JetBlue Reports Larger Third-Quarter Loss as Fuel Costs Climb

JetBlue Airways reported a net loss of $257 million for the three months ended Sept. 30, according to CNBC. The loss was larger than the $143 million net loss the airline posted in the same period a year earlier.

One of the biggest reasons for the higher costs was fuel. JetBlue's fuel bill rose 61% to $868 million during the quarter.

Passengers paid more for their tickets, too. JetBlue's average fares rose more than 19% to $245.11 in the third quarter, up from $205.67 in the year-earlier period.

The airline's adjusted loss was 60 cents per share, compared with an expected loss of 55 cents per share. Its third-quarter revenue was $2.81 billion, slightly below the $2.82 billion that analysts expected.

CEO Joanna Geraghty said demand and yields drove revenue above the airline's initial expectations. Yield is the amount of money earned from each passenger for each mile flown.

JetBlue ended the quarter with $2.2 billion in liquidity, which is the cash and other assets a company can quickly use to pay its bills. The airline also reported an unencumbered asset base of $7 billion, including $2.8 billion in aircraft and engines. Unencumbered means the assets are not used as security for a loan. As of Sept. 30, JetBlue had total debt of $8.4 billion.

JetBlue's shares fell to a new low on Monday. After hours on the same day, the stock rose roughly 11%.

A group of JetBlue's senior creditors, the people and companies it owes money to, is reportedly working with restructuring adviser PJT Partners. A restructuring adviser helps companies reorganize their finances.

JetBlue last posted an annual profit in 2019. Its chief financial officer, Ursula Hurley, said the airline aims for at least $1 in earnings per share and positive free cash flow in 2028.

JetBlue's earnings call is scheduled for Tuesday at 10 a.m. ET.