JetBlue’s fourth-quarter guidance puts adjusted operating margin 1 to 2 percentage points above its level a year earlier, with travel demand helping the carrier manage higher fuel costs.
The airline reported a net loss of $257 million for the quarter through Sept. 30, compared with $143 million in the prior-year period. Fuel expense rose 61% to $868 million. The average fare was $245.11, up more than 19% from $205.67 a year earlier.
CEO Joanna Geraghty said passenger demand and pricing brought revenue above JetBlue’s original expectations, limiting the effect of higher fuel costs on the quarter. She said those customer trends continued into the fourth quarter.
For full-year 2026, JetBlue projected an adjusted operating margin between negative 4.5% and negative 6.5%. The fourth-quarter guidance points to improvement from the same period a year earlier, while the annual projection remains below zero.
The airline’s multiyear plan pairs cost reductions with efforts to bring in more revenue from premium seating. Its domestic first-class section recently went on sale. JetBlue last recorded an annual profit in 2019 and faces competition from larger carriers. A federal judge blocked its proposed acquisition of Spirit Airlines as anticompetitive. A separate judge blocked JetBlue’s regional partnership with American Airlines, which the carriers said would help them compete in the Northeast. JetBlue has since entered into a partnership with United Airlines.
JetBlue reported adjusted losses of 60 cents per share and revenue of $2.81 billion. Estimates compiled by LSEG had called for a loss of 55 cents per share and revenue of $2.82 billion. At Sept. 30, the airline had $2.2 billion in liquidity and $8.4 billion in total debt. CFO Ursula Hurley said JetBlue believes its liquidity and financing options can support its 2028 goals of earnings of at least $1 per share and positive free cash flow.
EconoTimes previously covered the airline’s third-quarter loss and fuel-cost increase. JetBlue executives are scheduled to discuss the results Tuesday, Oct. 27, at 10 a.m. ET.
