Third Quarter 2026
Filed Oct 26, 2026JetBlue announced third-quarter 2026 operating revenue of $2.8 billion, up 21.1% year-over-year, while reporting a GAAP net loss of $ (257) million and forecasting 1–2 points of fourth-quarter year-over-year adjusted operating margin expansion.
Revenue, RASM and yield increased sharply and adjusted operating margin improved year-over-year, but higher fuel costs contributed to a wider GAAP operating loss and net loss.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 passenger revenueGAAP | $2.6B | – | 21.8% |
| Q3 2026 other operating revenueGAAP | $212M | – | 13.4% |
| Q3 2026 total operating revenuesGAAP | $2.81B | – | 21.1% |
| Q3 2026 aircraft fuel expenseGAAP | $868M | – | 61.0% |
| Q3 2026 salaries, wages and benefitsGAAP | $946M | – | 9.4% |
| Q3 2026 landing fees and other rentsGAAP | $199M | – | 11.1% |
| Q3 2026 depreciation and amortizationGAAP | $186M | – | 7.4% |
| Q3 2026 aircraft rentGAAP | $19M | – | (8.3%) |
| Q3 2026 sales and marketingGAAP | $92M | – | 17.2% |
| Q3 2026 maintenance, materials and repairsGAAP | $204M | – | (2.3%) |
| Q3 2026 special itemsGAAP | $33M | – | NM |
| Q3 2026 other operating expensesGAAP | $409M | – | 15.9% |
| Q3 2026 total operating expensesGAAP | $2.96B | – | 22.1% |
| Q3 2026 operating lossGAAP | −$144M | – | 44.6% |
| Q3 2026 operating marginGAAP | (5.1)% | – | (0.8) pts. |
| Q3 2026 interest expenseGAAP | −$149M | – | 2.3% |
| Q3 2026 interest incomeGAAP | $17M | – | (45.4%) |
| Q3 2026 capitalized interestGAAP | $1M | – | (32.0%) |
| Q3 2026 gain on investments, netGAAP | $ — million | – | (94.3%) |
| Q3 2026 other incomeGAAP | $5M | – | (53.2%) |
| Q3 2026 total other expenseGAAP | −$126M | – | 32.2% |
| Q3 2026 loss before income taxesGAAP | −$270M | – | 38.6% |
| Q3 2026 pre-tax marginGAAP | (9.6)% | – | (1.2) pts. |
| Q3 2026 income tax benefitGAAP | $13M | – | (74.1%) |
| Q3 2026 net lossGAAP | −$257M | – | 80.4% |
| Q3 2026 basic loss per common shareGAAP | $ (0.68) | – | – |
| Q3 2026 diluted loss per common shareGAAP | $ (0.68) | – | – |
| Q3 2026 adjusted operating loss excluding special itemsnon-GAAP | −$111M | – | – |
| Q3 2026 adjusted operating marginnon-GAAP | (3.9)% | – | – |
| Q3 2026 net loss excluding special items and gain on investmentsnon-GAAP | −$226M | – | – |
| Q3 2026 diluted loss per share excluding special items and gain on investmentsnon-GAAP | $ (0.60) | – | – |
| Q3 2026 available seat milesother | 17.27B | – | 2.3% |
| Q3 2026 revenue passenger milesother | 14.44B | – | 0.5% |
| Q3 2026 revenue passengersother | 10.61M | – | 2.2% |
| Q3 2026 load factorother | 83.6% | – | (1.5) pts. |
| Q3 2026 average fareother | $245.1M | – | 19.2% |
| Q3 2026 yield per passenger mileother | 18.01 cents | – | 21.2% |
| Q3 2026 passenger revenue per ASMother | 15.06 cents | – | 19.1% |
| Q3 2026 operating revenue per ASMother | 16.28 cents | – | 18.4% |
| Q3 2026 operating expense per ASMother | 17.12 cents | – | 19.4% |
| Q3 2026 operating expense per ASM, excluding fuelnon-GAAP | 11.78 cents | – | 7.0% |
| Q3 2026 average fuel cost per gallonother | $ 3.91 | – | 57.4% |
| Nine months ended September 30, 2026 total operating revenuesGAAP | $7.75B | – | 13.7% |
| Nine months ended September 30, 2026 total operating expensesGAAP | $8.26B | – | 16.5% |
| Nine months ended September 30, 2026 operating lossGAAP | −$509M | – | 90.2% |
| Nine months ended September 30, 2026 operating marginGAAP | (6.6)% | – | (2.7) pts. |
| Nine months ended September 30, 2026 net lossGAAP | −$823M | – | 93.6% |
| Nine months ended September 30, 2026 diluted loss per common shareGAAP | $ (2.20) | – | – |
| Nine months ended September 30, 2026 operating expense per ASM, excluding fuelnon-GAAP | 11.69 cents | – | 5.3% |
| Nine months ended September 30, 2026 adjusted operating marginnon-GAAP | (6.1)% | – | – |
Fourth Quarter and Full Year 2026 Outlook outlook
- Tax rate~6% for the full year 2026
- Note4Q 2026 ASMs year-over-year: 3.0% - 4.0%
- NoteFY 2026 ASMs year-over-year: 1.5% - 2.5%
- Note4Q 2026 RASM year-over-year: 18.0% - 22.0%
- NoteFY 2026 RASM year-over-year: 13.5% - 14.5%
- Note4Q 2026 CASM Ex-Fuel year-over-year: (1.0%) - 1.0%
- NoteFY 2026 CASM Ex-Fuel year-over-year: 3.5% - 4.5%
- Note4Q 2026 fuel price per gallon: $4.64
- NoteFY 2026 fuel price per gallon: $3.95
- Note4Q 2026 adjusted operating margin: 1–2 points of year-over-year operating margin expansion
- NoteFY 2026 interest expense: ~$590 million
- Note4Q 2026 capital expenditures: ~$300 million
- NoteFY 2026 capital expenditures: ~$850 million
What drove it
- Higher yields supported by improved revenue management technology drove the majority of third-quarter revenue outperformance.
- Both premium and Main achieved double-digit RASM growth, and demand remained resilient across peak and off-peak travel periods.
- Fort Lauderdale RASM increased nearly 15% on more than 65% capacity growth.
- Loyalty revenue grew 20% year-over-year, with double-digit co-brand spending growth and more than eightfold growth in Premier Card acquisitions.
- JetBlue completed its upgraded revenue management system transition, with early benefits from improved forecast accuracy and optimization of Mint and connecting itineraries.
- The company launched sales for BlueFirst across more than 30 routes, with initial service beginning December 8 between Boston and Fort Lauderdale.
Concerns
- Average fuel cost per gallon was $3.91, 57% higher compared to the prior-year period.
- Q3 CASM increased 19.4% year-over-year, while CASM ex-Fuel increased 7.0% year-over-year.
- GAAP operating margin was (5.1)% and GAAP net loss was $ (257) million.
- Fourth-quarter fuel prices are forecasted to be 85% higher than in the same period last year.
- The release cited approximately four points of disruption-related pressure in third-quarter unit costs excluding fuel.
- Cash and cash equivalents declined to $ 1,258 million from $ 1,946 million at December 31, 2025.
What to watch
- Whether fourth-quarter RASM reaches the 18.0% - 22.0% year-over-year outlook range.
- Whether fourth-quarter CASM Ex-Fuel falls within the (1.0%) - 1.0% year-over-year outlook range.
- Delivery of 1–2 points of fourth-quarter year-over-year adjusted operating margin expansion despite forecasted fuel price of $4.64 per gallon.
- Fort Lauderdale expansion, where peak daily departures are planned to exceed 150 this winter and fourth-quarter seat share is expected to reach approximately 37%.
- Funding of the additional $250 million of aircraft-backed financing, subject to customary funding mechanics.
- Execution toward sustained operating profitability in 2027 and at least $1 EPS and positive free cash flow in 2028.
Balance sheet and cash flow
- Cash and cash equivalents at September 30, 2026: $ 1,258 million; December 31, 2025: $ 1,946 million.
- Total investment securities at September 30, 2026: $ 368 million; December 31, 2025: $ 531 million.
- Total debt at September 30, 2026: $ 8,393 million; December 31, 2025: $ 8,498 million.
- Stockholders' equity at September 30, 2026: $ 1,337 million; December 31, 2025: $ 2,120 million.
- Liquidity at the end of the third quarter: $2.2 billion, including a $600 million undrawn credit facility.
- Additional aircraft-backed financing expected to fund in the fourth quarter: $250 million.
- Unencumbered asset base: ~$7 billion, including $2.8 billion in aircraft and engines.
- Third-quarter capital expenditures, including predelivery deposits: $189 million.
- Nine-month capital expenditures and pre-delivery deposits for flight equipment: $ (624) million; prior year: $ (777) million.
- Capital expenditures and pre-delivery deposits in Q1 2026: $141 million; Q2 2026: $234 million; Q3 2026: $249 million.
Analysis
JetBlue posted strong top-line performance in the third quarter. Operating revenue was $ 2,812 million, up 21.1%, as passenger revenue increased 21.8% to $ 2,600 million. Operating revenue per ASM increased 18.4%, average fare increased 19.2%, and yield per passenger mile increased 21.2%. These gains occurred with available seat miles up 2.3%, revenue passengers up 2.2%, and load factor down 1.5 points to 83.6%, indicating that higher yields rather than traffic growth drove the revenue result.
Cost pressure remained substantial. Aircraft fuel expense rose 61.0% to $ 868 million, while average fuel cost per gallon was $ 3.91, up 57.4%. Total operating expenses increased 22.1% to $ 2,956 million and operating expense per ASM increased 19.4%. CASM ex-Fuel rose 7.0% to 11.78 cents. As a result, the GAAP operating loss widened to $ (144) million from $ (100) million, and GAAP operating margin declined to (5.1)% from (4.3)%. Excluding special items, adjusted operating margin improved to (3.9)% from (4.1)%.
Below operating income, interest expense was $ (149) million and the income tax benefit declined to $ 13 million from $ 53 million. GAAP net loss widened to $ (257) million from $ (143) million, or $ (0.68) per diluted share compared with $ (0.39). The non-GAAP net loss excluding special items and gain on investments was $ (226) million, and diluted loss per share on that basis was $ (0.60). For the first nine months, operating revenue rose 13.7%, but net loss increased to $ (823) million from $ (425) million.
Liquidity was $2.2 billion at quarter-end, including a $600 million undrawn credit facility. Cash and cash equivalents were $ 1,258 million, total debt was $ 8,393 million, and the company expects an additional $250 million of aircraft-backed financing in the fourth quarter. Third-quarter capital expenditures, including predelivery deposits, totaled $189 million, below revised guidance of approximately $275 million because one aircraft delivery and LGA slot payments shifted into the fourth quarter. No capital returns were reported.
Fourth-quarter guidance calls for 18.0% - 22.0% RASM growth and 3.0% - 4.0% ASM growth, while CASM Ex-Fuel is expected to range from a decline of (1.0%) to growth of 1.0%. JetBlue expects 1–2 points of year-over-year adjusted operating margin expansion despite a forecasted fuel price of $4.64 per gallon. The key reported operating issue is whether revenue-management, Fort Lauderdale growth, loyalty and product initiatives can sustain revenue strength while unit-cost growth steps down and fuel prices remain elevated.
Management, verbatim
I'm very encouraged by the progress we made in the third quarter. Resilient demand and strong yields drove revenue well ahead of our initial expectations, allowing us to recapture more of the increase in fuel costs than we initially expected. That momentum has carried into the fourth quarter, and Fort Lauderdale continues to deliver exceptional results even as we significantly grow capacity.
Joanna Geraghty, chief executive officer
Our strong revenue performance is encouraging, and we see meaningful runway for further growth as our commercial initiatives continue to mature.
Marty St. George, president
We expect further margin expansion in the fourth quarter despite fuel prices forecasted to be 85% higher than in the same period last year. This is a testament to the compounding benefits of our JetForward strategy, which is improving our revenues and costs as we head into 2027.
Ursula Hurley, chief financial officer
Not in the filing
stated, not guessed- Prior release outlook was not provided, so comparisons of actual results with prior guidance are unavailable.
- Gross profit and gross margin were not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Share repurchases, dividends and other capital returns were not reported.
- Quarterly cash flow from operations was not reported.
- No reportable business-segment revenue was provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.