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JetBlue Airways Q3 Earnings Miss Estimates on Higher Fuel Costs
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Key Takeaways
JetBlue's Q3 adjusted loss widens to 60 cents per share as revenues rise 21.1% but miss estimates.
JBLU's fuel costs surge 61%, driving operating expenses up 22.1% despite an 18.4% increase in RASM.
JetBlue targets positive operating profitability in 2027 with JetForward benefits set to reach $1.2B in 2028.
JetBlue Airways Corporation (JBLU - Free Report) reported an adjusted loss of 60 cents per share for the third quarter of 2026, wider than the Zacks Consensus Estimate of a loss of 55 cents. The result marked a negative earnings surprise of 9.1%, while the adjusted loss widened from 40 cents a year ago.
Operating revenues of $2.81 billion missed the consensus estimate of $2.83 billion by 0.6%, despite rising 21.1% year over year. Strong pricing and demand lifted revenue per available seat mile, or RASM, 18.4%, but higher fuel costs weighed on profitability.
JetBlue Airways Corporation Price, Consensus and EPS Surprise
Passenger revenues increased 21.8% year over year to $2.60 billion, while other revenues climbed 13.4% to $212 million. Revenue passengers rose 2.2% to 10.61 million, and revenue passenger miles advanced 0.5% to 14.44 billion.
Capacity, measured in available seat miles, increased 2.3%. The load factor (% of seats filled by passengers) declined 1.5 percentage points to 83.6%, while the average fare rose 19.2% to $245.11. Yield per passenger mile increased 21.2% to 18.01 cents.
JetBlue's Costs Rise on Fuel and Operational Pressure
Total operating expenses increased 22.1% year over year to $2.96 billion. Aircraft fuel expense surged 61% to $868 million, as the average fuel cost per gallon climbed 57% to $3.91. Salaries, wages and benefits rose 9.4% to $946 million.
Operating expense per available seat mile increased 19.4% to 17.12 cents.
JBLU posted an operating loss of $144 million compared with $100 million a year ago. The adjusted operating margin improved 0.2 percentage points to negative 3.9%.
JBLU Maintains Liquidity Amid Heavy Obligations
Cash and cash equivalents totaled $1.26 billion at Sept. 30, 2026, down from $1.95 billion at Dec. 31, 2025. Investment securities stood at $368 million. Total debt and finance lease obligations were $8.39 billion, while stockholders' equity declined to $1.34 billion from $2.12 billion.
JetBlue ended the third quarter with approximately $2.2 billion in liquidity, including a $600 million undrawn revolving credit facility. Third-quarter capital expenditures totaled $189 million, while an additional $250 million in aircraft-backed financing is expected during the fourth quarter.
JetBlue Raises Revenue Outlook but Faces Fuel Headwinds
For the fourth quarter of 2026, JBLU expects capacity growth of 3-4% and RASM growth of 18-22%. CASM, excluding fuel, is projected to range between a 1% decline and a 1% increase, while the fuel price per gallon is estimated at $4.64.
For 2026, capacity is expected to rise 1.5-2.5%, with RASM growth of 13.5-14.5% and CASM ex-fuel growth of 3.5-4.5%. The adjusted operating margin is projected between negative 4.5% and 6.5%. Interest expense is estimated at approximately $590 million, with capital expenditures of roughly $850 million.
JBLU Targets Profitability Through JetForward
JetForward remains on track to generate at least $310 million in incremental earnings before interest and taxes in 2026. Management expects annual incremental benefits of $850-$950 million by 2027, rising to approximately $1.2 billion in 2028.
JetBlue continues to target positive operating profitability in 2027 and earnings of at least $1 per share in 2028. The latter target assumes continued demand strength and average jet fuel prices of $3 per gallon. Management also expects positive free cash flow by 2028, supported by margin expansion and annual capital expenditures below $1 billion.
Alaska Air Group, Inc. (ALK - Free Report) reported third-quarter 2026 adjusted earnings of 36 cents per share, excluding certain tax impacts, beating the Zacks Consensus Estimate of 35 cents by 2.9%. The company had reported adjusted earnings of $1.05 per share a year earlier. Higher fuel expenses weighed on profitability despite strong revenue momentum.
Operating revenues increased 14.4% year over year to $4.30 billion but missed the consensus mark of $4.31 billion marginally by 0.1%.
Wabtec Corporation (WAB - Free Report) reported mixed third-quarter 2026 results, wherein earnings surpassed the Zacks Consensus Estimate, but revenues missed the same.
Quarterly earnings (excluding 41 cents from non-recurring items) of $2.83 per share beat the Zacks Consensus Estimate of $2.72 by 4.04% and increased 22% year over year. Revenues climbed 8.1% year over year to $3.12 billion but missed the consensus mark of $3.18 billion by 2%. The 12-month backlog increased 8.8% to $8.99 billion.
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JetBlue Airways Q3 Earnings Miss Estimates on Higher Fuel Costs
Key Takeaways
JetBlue Airways Corporation (JBLU - Free Report) reported an adjusted loss of 60 cents per share for the third quarter of 2026, wider than the Zacks Consensus Estimate of a loss of 55 cents. The result marked a negative earnings surprise of 9.1%, while the adjusted loss widened from 40 cents a year ago.
Operating revenues of $2.81 billion missed the consensus estimate of $2.83 billion by 0.6%, despite rising 21.1% year over year. Strong pricing and demand lifted revenue per available seat mile, or RASM, 18.4%, but higher fuel costs weighed on profitability.
JetBlue Airways Corporation Price, Consensus and EPS Surprise
JetBlue Airways Corporation price-consensus-eps-surprise-chart | JetBlue Airways Corporation Quote
JBLU's Traffic and Pricing Metrics Improve
Passenger revenues increased 21.8% year over year to $2.60 billion, while other revenues climbed 13.4% to $212 million. Revenue passengers rose 2.2% to 10.61 million, and revenue passenger miles advanced 0.5% to 14.44 billion.
Capacity, measured in available seat miles, increased 2.3%. The load factor (% of seats filled by passengers) declined 1.5 percentage points to 83.6%, while the average fare rose 19.2% to $245.11. Yield per passenger mile increased 21.2% to 18.01 cents.
JetBlue's Costs Rise on Fuel and Operational Pressure
Total operating expenses increased 22.1% year over year to $2.96 billion. Aircraft fuel expense surged 61% to $868 million, as the average fuel cost per gallon climbed 57% to $3.91. Salaries, wages and benefits rose 9.4% to $946 million.
Operating expense per available seat mile increased 19.4% to 17.12 cents.
JBLU posted an operating loss of $144 million compared with $100 million a year ago. The adjusted operating margin improved 0.2 percentage points to negative 3.9%.
JBLU Maintains Liquidity Amid Heavy Obligations
Cash and cash equivalents totaled $1.26 billion at Sept. 30, 2026, down from $1.95 billion at Dec. 31, 2025. Investment securities stood at $368 million. Total debt and finance lease obligations were $8.39 billion, while stockholders' equity declined to $1.34 billion from $2.12 billion.
JetBlue ended the third quarter with approximately $2.2 billion in liquidity, including a $600 million undrawn revolving credit facility. Third-quarter capital expenditures totaled $189 million, while an additional $250 million in aircraft-backed financing is expected during the fourth quarter.
JetBlue Raises Revenue Outlook but Faces Fuel Headwinds
For the fourth quarter of 2026, JBLU expects capacity growth of 3-4% and RASM growth of 18-22%. CASM, excluding fuel, is projected to range between a 1% decline and a 1% increase, while the fuel price per gallon is estimated at $4.64.
For 2026, capacity is expected to rise 1.5-2.5%, with RASM growth of 13.5-14.5% and CASM ex-fuel growth of 3.5-4.5%. The adjusted operating margin is projected between negative 4.5% and 6.5%. Interest expense is estimated at approximately $590 million, with capital expenditures of roughly $850 million.
JBLU Targets Profitability Through JetForward
JetForward remains on track to generate at least $310 million in incremental earnings before interest and taxes in 2026. Management expects annual incremental benefits of $850-$950 million by 2027, rising to approximately $1.2 billion in 2028.
JetBlue continues to target positive operating profitability in 2027 and earnings of at least $1 per share in 2028. The latter target assumes continued demand strength and average jet fuel prices of $3 per gallon. Management also expects positive free cash flow by 2028, supported by margin expansion and annual capital expenditures below $1 billion.
Currently, JBLU has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q3 Performance of Other Transportation Companies
Alaska Air Group, Inc. (ALK - Free Report) reported third-quarter 2026 adjusted earnings of 36 cents per share, excluding certain tax impacts, beating the Zacks Consensus Estimate of 35 cents by 2.9%. The company had reported adjusted earnings of $1.05 per share a year earlier. Higher fuel expenses weighed on profitability despite strong revenue momentum.
Operating revenues increased 14.4% year over year to $4.30 billion but missed the consensus mark of $4.31 billion marginally by 0.1%.
Wabtec Corporation (WAB - Free Report) reported mixed third-quarter 2026 results, wherein earnings surpassed the Zacks Consensus Estimate, but revenues missed the same.
Quarterly earnings (excluding 41 cents from non-recurring items) of $2.83 per share beat the Zacks Consensus Estimate of $2.72 by 4.04% and increased 22% year over year. Revenues climbed 8.1% year over year to $3.12 billion but missed the consensus mark of $3.18 billion by 2%. The 12-month backlog increased 8.8% to $8.99 billion.