JetBlue Airways shares rose 18% in trading Tuesday, rebounding sharply from a Monday decline that had pushed the stock to a new low. The recovery came as investors responded positively to management’s guidance that the carrier would return to profitability, which appeared to counteract concerns raised by reports of discussions with restructuring advisers.
On Monday, the airline reported a net loss of $257 million for the three months ended September 30, representing a wider loss compared with the year-earlier period when the carrier posted a $143 million loss. Fuel expenses climbed significantly, rising 61% to $868 million during the quarter. Despite the increased losses, company leadership emphasized that financial performance remained aligned with its turnaround strategy. CEO Joanna Geraghty stated on Tuesday that the airline had no plans to pursue bankruptcy and denied engagement with restructuring firms, characterizing divergence between market sentiment and actual financial results as a “fundamental disconnect.”
The airline reported that revenue per available seat mile would increase as much as 22% in the fourth quarter, with full-year growth projected between 13.5% and 14.5%. Average fares rose more than 19% to $245.11 in the third quarter from $205.67 a year earlier. JetBlue ended the quarter with $2.2 billion in liquidity and noted its unencumbered asset base stood at $7 billion, including $2.8 billion in aircraft and engines, with total debt of $8.4 billion.
Executives highlighted positioning for profitability targets, with the CFO noting confidence in having “the liquidity and financing options to create a strong bridge to at least $1 EPS and positive free cash flow in 2028.” The carrier has been navigating cost pressures affecting the broader airline industry while implementing strategic investments in premium seating and capacity management, with growth expected at no more than 4% in the current quarter. JetBlue last achieved annual profitability in 2019.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI