JetBlue Fuel Bill Soars 61% to $868 Million

JetBlue Airways faced a fuel expense of $868 million in the third quarter, a 61% increase from the same period last year. The spike in energy costs drove the New York-based carrier to a net loss of $257 million for the three months ending September 30. That figure compares to a $143 million loss reported a year earlier.

Despite the widening deficit, the airline’s stock price jumped approximately 11% in after-hours trading on Monday. The market reaction followed an earnings release in which management highlighted resilient passenger demand. CEO Joanna Geraghty noted that strong yields allowed the company to recover a larger portion of the increased fuel costs than initially projected. She added that this momentum has continued into the fourth quarter, with the Fort Lauderdale hub delivering strong results even as the airline expands its capacity.

Average fares for JetBlue passengers rose more than 19% during the quarter. The average fare reached $245.11, up from $205.67 in the year-earlier period. This price increase contributed to total revenue of $2.81 billion. That amount fell slightly short of the $2.82 billion expected by Wall Street analysts, according to data compiled by LSEG. The airline’s adjusted loss per share came in at 60 cents, exceeding the expected 55 cents.

Executives plan to discuss the company’s financial health during an earnings call scheduled for Tuesday at 10 a.m. ET. Analysts are expected to probe the long-term outlook given the sustained losses. Reports indicate that a group of senior creditors is working with restructuring adviser PJT Partners to evaluate the company’s position. The Wall Street Journal first reported this development on Friday.

The airline stated it ended the quarter with $2.2 billion in liquidity. Its unencumbered asset base stands at $7 billion, which includes $2.8 billion in aircraft and engines. Total debt reached $8.4 billion as of September 30. CFO Ursula Hurley said in a statement that the company believes it has the financial flexibility to reach at least $1 in earnings per share and positive free cash flow by 2028. She emphasized a focus on disciplined cost execution and capital management.

JetBlue has not posted an annual profit since 2019. The carrier is currently executing a multiyear turnaround plan that involves cost reductions and revenue growth through premium seating options. A new domestic first class section recently went on sale as part of this strategy. Fuel costs have impacted profits across the airline industry, but JetBlue faces additional challenges from competition. The company previously attempted to acquire Spirit Airlines, a deal that was blocked by a federal judge on anticompetitive grounds. A regional partnership with American Airlines was also rejected by a court, leading JetBlue to form a partnership with United Airlines instead.