New York, United States: JetBlue Airways reported a net loss of $257 million for the third quarter of 2026, compared with $143 million in the same period last year, as a sharp increase in fuel expenditure and higher operating costs outpaced revenue growth. The airline announced its results on October 26, 2026, reporting operating revenue of $2.812 billion for the three months ended September 30, up 21.1% year-on-year.
Aircraft fuel expenditure increased 61% to $868 million, while total operating expenses rose 22.1% to $2.956 billion. The carrier’s average fuel price reached $3.91 per gallon, 57.4% higher than a year earlier. JetBlue’s operating loss widened to $144 million from $100 million, and its reported loss per share increased to 68 cents from 39 cents.
Despite the higher costs, revenue growth was stronger than the airline had initially expected. Revenue per available seat mile (RASM), a measure of how much revenue an airline generates for each seat-mile it offers, increased 18.4%. JetBlue said it recovered approximately 87% of the increase in fuel costs through stronger revenue performance, supported by higher fares, improved revenue management and resilient demand across peak and off-peak travel periods.
Chief Executive Officer Joanna Geraghty said she was “very encouraged by the progress” made during the quarter. She said resilient demand and stronger yields had driven revenue above initial expectations and enabled the airline to recover more of the fuel-cost increase than anticipated. She also pointed to continued momentum into the fourth quarter and growth at Fort Lauderdale.
For the first nine months of 2026, JetBlue recorded a net loss of $823 million, compared with $425 million in the corresponding period of 2025. Total operating revenue rose 13.7% to $7.749 billion, while operating expenses increased 16.5% to $8.258 billion.
Fuel expenditure for the nine-month period climbed 51.4% to $2.352 billion. Operating losses increased to $509 million from $268 million, while the loss before income taxes widened to $877 million from $561 million. The reported loss per share reached $2.20, compared with $1.18 a year earlier. Excluding special items and investment gains, the adjusted net loss was $795 million, against $412 million in the previous year’s period.
The airline’s passenger revenue increased 13.6% to $7.135 billion, while other operating revenue rose 14.8% to $614 million. JetBlue carried 30.416 million revenue passengers during the first nine months, up 2.7% year-on-year. Available seat miles increased 1.3%, while the load factor edged up to 82.8% from 82.6%.
JetBlue highlighted Fort Lauderdale as a key growth market, reporting that its revenue per available seat mile there increased nearly 15% while capacity expanded by more than 65%. The airline has added 15 destinations and increased flight frequencies to strengthen local schedules and connecting itineraries.
Peak daily departures are expected to exceed 150 this winter, 39% above the year-earlier level. JetBlue expects its fourth-quarter seat share at Fort Lauderdale to reach approximately 37%, an increase of 14 percentage points year-on-year. Co-branded credit-card acquisitions in Broward County rose 55% during the third quarter.
The airline also completed its transition to an upgraded revenue management system, which it said delivered early benefits through improved forecasting and better optimisation of its Mint premium product and connecting itineraries. Loyalty revenue increased 20% year-on-year, alongside double-digit growth in co-branded card spending and more than eightfold growth in Premier Card acquisitions following a card refresh. JetBlue also opened BlueHouse Boston to strengthen its premium customer offering.
Through its Blue Sky partnership with United Airlines, TrueBlue members had redeemed more than 1.1 billion points on United flights since the partnership began. JetBlue’s Paisley travel business recorded its strongest financial results to date in the quarter. The announcement also highlighted MileagePlus Travel rental-car bookings outperforming United’s previous provider since launch, with additional travel offerings planned through the remainder of 2026 and the first half of 2027.
JetBlue has begun selling BlueFirst, its new domestic first-class product, across more than 30 routes. Initial service is scheduled to begin on December 8, 2026, between Boston and Fort Lauderdale, with further routes to follow in phases.
President Marty St. George said the airline saw further growth potential as its commercial initiatives matured. He highlighted improved revenue management, stronger loyalty engagement, BlueFirst and expanded travel offerings as opportunities to sustain revenue momentum into 2027 and beyond.
JetBlue expects fourth-quarter operating margin to expand by one to two percentage points year-on-year, despite forecasting fuel prices to be 85% higher than in the same period of 2025. Chief Financial Officer Ursula Hurley attributed the outlook to the airline’s JetForward strategy, which is intended to improve revenue and costs.
For the fourth quarter, JetBlue forecast available seat mile growth of 3% to 4% and RASM growth of 18% to 22%. It expects non-fuel cost per available seat mile to range from a 1% decline to a 1% increase. The airline projected an average fuel price of $4.64 per gallon for the quarter.
For the full year, JetBlue expects available seat miles to grow 1.5% to 2.5% and RASM to increase 13.5% to 14.5%. Non-fuel cost per available seat mile is forecast to rise 3.5% to 4.5%. The carrier estimated a full-year average fuel price of $3.95 per gallon, adjusted operating margin of negative 4.5% to negative 6.5%, interest expense of approximately $590 million and capital expenditure of about $850 million.
The airline ended September with $2.2 billion in liquidity, including a $600 million undrawn credit facility. It expects an additional $250 million in aircraft-backed financing to be funded during the fourth quarter, subject to customary funding conditions. Its unencumbered asset base expanded to approximately $7 billion, including $2.8 billion in aircraft and engines, following updated fleet appraisals and aircraft deliveries paid for in cash.
JetBlue said its underlying unit-cost performance excluding fuel remained within initial expectations, apart from approximately four percentage points of disruption-related pressure during the third quarter. It expects non-fuel unit-cost growth to ease substantially in the fourth quarter, supporting further margin improvement.
Geraghty said the company expected further adjusted operating margin expansion in the fourth quarter and remained confident in achieving sustained operating profitability in 2027, followed by at least $1 in earnings per share and positive free cash flow in 2028. Hurley said the airline believed its liquidity and financing options would provide a bridge to those targets.
At September 30, 2026, JetBlue reported cash and cash equivalents of $1.258 billion and investment securities of $368 million, compared with $1.946 billion and $531 million, respectively, at December 31, 2025. Total assets stood at $15.966 billion, down from $16.570 billion at year-end 2025.
Total debt was $8.393 billion, compared with $8.498 billion at the end of 2025, while stockholders’ equity declined to $1.337 billion from $2.120 billion.
Third-quarter capital expenditure, including pre-delivery deposits, totalled $189 million, below the revised guidance of approximately $275 million. JetBlue attributed the difference primarily to the timing of an aircraft delivery and LaGuardia Airport slot payments shifting into the fourth quarter. The company’s full-year capital expenditure forecast excludes one Airbus A321neo XLR that it expects to sell.
The airline’s earnings release stated that its estimated effective tax rate for 2026 was approximately 6%, primarily reflecting a non-cash impact from a valuation allowance included in its annual tax-rate forecast. Special items in the 2026 results included an adjustment to litigation reserves, while the 2025 periods included severance expenses and other special items.
JetBlue scheduled a conference call to discuss its third-quarter results for October 27, 2026, at 10:00 a.m. Eastern Time. The airline said a webcast replay and presentation materials would be archived on its investor website for at least 30 days.
The company cautioned that its financial outlook and profitability targets are forward-looking estimates subject to risks, including fuel-price volatility, competitive conditions, labour and maintenance costs, financing requirements, operational disruptions, regulatory changes, geopolitical developments and changes in travel demand. It said actual results could differ materially from its projections.
