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JBLU Jetblue Airways+19.0%Stock moveEarnings and guidance

JetBlue Stock Jumps 19% as Third-Quarter Revenue Grows 21% and Fuel Recapture Tops Guidance

Revenue per available seat mile rose 18.4% from a year earlier, and the airline said margins should expand again in the fourth quarter despite higher fuel prices.

By Zintick Team · Editor: Kratik Mehta
Published

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Photo: Speed Stock/Shutterstock.com

Key points

  • JBLU rose 19.0% on Oct. 27 after third-quarter results and fourth-quarter guidance were released
  • Revenue rose 21.1% to $2.8 billion; RASM grew 18.4% year over year
  • Airline recaptured about 87% of higher fuel costs, against a 70% to 80% expectation
  • Liquidity was $2.2 billion at quarter end, including a $600 million undrawn credit facility

JetBlue Airways (Nasdaq: JBLU) shares rose 19.0% on Tuesday, closing at $2.82 against a previous close of $2.37. The S&P 500 ETF (SPY) gained 0.56% over the same session, and volume ran about 2.6 times its usual level.

The move followed the airline's third-quarter results, which it released on Oct. 26 in an 8-K with the earnings release attached. The company reported operating revenue of $2.8 billion, up 21.1% from a year earlier, and revenue per available seat mile (RASM) of 18.4% growth. Management said that result was above its initial expectations for the quarter.

Revenue recovered most of the fuel increase

Average fuel cost $3.91 a gallon in the quarter, 57% higher than a year earlier, and operating expense per seat mile rose 19.4%. The company said it recaptured about 87% of the higher fuel costs, ahead of its 70% to 80% expectation. Higher yields, helped by a revenue management system upgrade, drove most of the revenue outperformance.

Fourth-quarter outlook

JetBlue guided to 18% to 22% RASM growth in the fourth quarter and expects adjusted operating margin to improve by 1 to 2 points year over year, even with fuel prices it forecast at $4.64 a gallon. For full-year 2026, it forecast an adjusted operating margin of negative 4.5% to negative 6.5%.

Balance sheet

The company ended the quarter with $2.2 billion of liquidity, including a $600 million undrawn credit facility. Cash and equivalents were $1.26 billion at Sept. 30. The 10-Q reported a net loss of $257 million for the quarter, wider than the $143 million loss a year earlier.

Sources

Written with AI from SEC filings and market data, and checked against those sources before publishing. Our editorial standards.

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Filings, figures and price history are on the Jetblue Airways page.