JetBlue Airways reported a net loss of $257 million for the three months ended September 30, nearly double the $143 million loss a year earlier, as the New York-based carrier grappled with a 61% surge in fuel costs to $868 million. Despite the wider loss, the airline's stock soared roughly 11% in after-hours trading Monday as executives signaled that strong travel demand and higher fares were helping to cushion the impact of elevated energy prices.
The company's average fares rose more than 19% to $245.11 in the third quarter from $205.67 in the year-earlier period, reflecting both stronger demand and the airline's ability to pass cost increases to passengers. CEO Joanna Geraghty said resilient demand and strong yields drove revenue ahead of initial expectations, allowing the carrier to recapture more of the fuel cost increase than anticipated. She noted that this momentum has carried into the fourth quarter, with the Fort Lauderdale base continuing to deliver strong results despite significant capacity growth.
JetBlue ended the quarter with $2.2 billion in liquidity and $7 billion in unencumbered assets, including $2.8 billion in aircraft and engines. Total debt stood at $8.4 billion as of September 30. CFO Ursula Hurley said the airline has liquidity and financing options to create a bridge to at least $1 earnings per share and positive free cash flow by 2028, emphasizing the company's focus on disciplined cost execution and capital management.
The airline last posted an annual profit in 2019 and is in the middle of a multiyear turnaround plan that includes cutting costs and boosting revenue through premium offerings, such as a new domestic first class section launched recently. JetBlue has faced additional headwinds from competitive pressures and regulatory setbacks, including a failed attempt to acquire Spirit Airlines and a blocked partnership with American Airlines, though it now has a partnership with United Airlines.
For borrowers and investors, JetBlue's ability to maintain profitability remains uncertain, with the airline dependent on sustained high fares and strong travel demand to offset historically elevated fuel costs and existing debt levels.