JetBlue Airways reported a net loss of $257 million for the third quarter ended Sept. 30, widening its deficit from a loss of $143 million in the same period a year earlier. The New York-based carrier attributed the deterioration primarily to a 61% increase in fuel expenses, which reached $868 million, even as it maintained that strong travel demand is supporting its financial trajectory.
CEO Joanna Geraghty stated in an earnings release that resilient demand and strong yields allowed the airline to capture revenue ahead of initial expectations. Geraghty said this performance enabled the company to recapture more of the fuel cost increases than originally anticipated. She added that this momentum has continued into the fourth quarter, noting that the Fort Lauderdale hub continues to deliver exceptional results while the airline significantly grows capacity.
The loss came as JetBlue shares fell to a new low on Monday. Executives are scheduled to hold an earnings call on Tuesday at 10 a.m. ET, where they will address analyst questions regarding the company's long-term health. The Wall Street Journal reported on Friday that a group of the airline's senior creditors is working with restructuring adviser PJT Partners.
JetBlue said it ended the quarter with $2.2 billion in liquidity. The airline's unencumbered asset base now stands at $7 billion, which includes $2.8 billion in aircraft and engines. The carrier has not posted an annual profit since 2019 and is currently executing a multiyear turnaround plan. This strategy involves cutting costs and boosting revenue through investments in premium seating, including a new domestic first class section that recently went on sale.
Fuel costs have reduced profits across the airline industry. JetBlue noted that travel demand has remained strong despite fares rising more than 20% this year. The airline faces competitive pressures from larger rivals and legal hurdles in its expansion efforts. A federal judge previously ruled that JetBlue's acquisition of Spirit Airlines was anticompetitive, blocking that deal. Judges also blocked a regional partnership between JetBlue and American Airlines, which the carriers argued would improve their ability to compete against other airlines in the congested Northeast U.S. market. JetBlue currently maintains a partnership with United Airlines.