JetBlue Airways shares rose sharply in trading on Tuesday following the company’s upbeat financial guidance, reversing losses from the previous day when concerns about potential restructuring had rattled investors. The carrier’s stock climbed 18% after hitting a new low, as management sought to reassure the market about its financial trajectory.
The airline reported a net loss of $257 million for the third quarter ended September 30, compared with a loss of $143 million in the same period a year earlier. The widened loss was attributed in part to fuel expenses, which climbed 61% to $868 million. However, company executives emphasized that operational metrics pointed toward improvement, with revenue per available seat mile expected to increase as much as 22% in the fourth quarter, bringing the full-year increase to between 13.5% and 14.5%. CEO Joanna Geraghty dismissed concerns about restructuring, stating the company had no plans or intentions to file for bankruptcy and was not working with any restructuring advisers.
The carrier ended the quarter with $2.2 billion in liquidity and an unencumbered asset base of $7 billion, including $2.8 billion in aircraft and engines, against total debt of $8.4 billion. Management projected achieving at least $1 earnings per share and positive free cash flow in 2028. Average fares increased more than 19% to $245.11 in the quarter from $205.67 a year earlier, reflecting both the airline’s pricing strategy and strong travel demand.
JetBlue is executing a multiyear turnaround plan that includes cost reductions and revenue-boosting initiatives such as introducing premium seating options, including a new domestic first class service. The airline has faced headwinds from regulatory challenges, including blocked deals with Spirit Airlines and American Airlines, though it maintains a partnership with United Airlines. The carrier expects to limit capacity growth to no more than 4% in the current quarter while expanding operations at Fort Lauderdale-Hollywood International Airport.
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