JetBlue Financials: Q3 Loss Widens as Fuel Costs Spike

JetBlue Airways reported a wider loss for its third quarter on Monday.

The carrier posted a net loss of $257 million for the three months ended Sept. 30. This figure compares to a $143 million loss during the same period last year. JetBlue's fuel expenses jumped 61% to reach $868 million.

Average fares increased to $245.11 from $205.67 a year prior, a rise of more than 19%. CEO Joanna Geraghty stated that resilient demand and strong yields helped the company recapture more of the fuel cost increase than initially expected. She noted that this momentum has continued into the fourth quarter. Geraghty said Fort Lauderdale continues to deliver exceptional results even as the airline grows capacity.

JetBlue shares rose roughly 11% in after-hours trading following the release. The stock had fallen to a new low earlier in the day. Investors are watching the company's financial health closely. Senior creditors are reportedly working with restructuring adviser PJT Partners according to a report from the Wall Street Journal. Executives will hold an earnings call on Tuesday at 10 a.m. ET to address these issues.

The airline 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 Sept. 30.

CFO Ursula Hurley said the company has the liquidity and financing options to create a bridge to at least $1 in earnings per share and positive free cash flow in 2028. The carrier is in the middle of a multiyear turnaround plan. This plan involves cutting costs and boosting revenue through premium seat investments.

JetBlue last posted an annual profit in 2019. The company faces competition from larger rivals. A federal judge blocked its acquisition of Spirit Airlines as anticompetitive. A judge also blocked a regional partnership with American Airlines. JetBlue currently holds a partnership with United Airlines.