JetBlue Posts Bigger Third-Quarter Loss Even as Revenue Rises 21%

what happened

JetBlue reported a net loss of $257 million, or 68 cents per share, in the third quarter, up from $143 million, or 39 cents, a year earlier. Excluding one-off items, the adjusted loss was 60 cents a share, worse than the 54 cents FactSet analysts had projected.

Revenue grew 21% to $2.81 billion from $2.32 billion, though slightly short of the $2.83 billion Wall Street models expected. Average fuel prices jumped 57% to $3.91 per gallon during the period.

According to a Wall Street Journal report relayed by Dow Jones Newswires, a group of senior creditors has retained a financial advisor and a law firm, a typical move when lenders fear a borrower may struggle to repay on schedule. The stock closed 9.7% lower after dipping as much as 12% intraday, and was heading for a record closing low. CFO Ursula Hurley said the company expects margins to keep expanding in the fourth quarter despite fuel costs seen 85% above a year earlier, and that it has the liquidity and financing to reach at least $1 in EPS and positive free cash flow in 2028.

why it matters

For airlines, costlier jet fuel squeezes margins directly, and JetBlue's debt concerns make its shares and bonds sensitive to creditor headlines. Sector investors will be watching how much cost pressure persists.

market impact

Airlines and jet fuel: higher fuel prices pressure margins, while debt risks weigh on JetBlue shares

tags

instruments