JetBlue unexpectedly released its third-quarter earnings Monday afternoon, ahead of its previously scheduled Tuesday report, following a sharp selloff in its shares amid mounting concerns about the airline's financial health.
For the third quarter ended in September, JetBlue posted a wider-than-expected loss as soaring fuel prices continued to weigh on its profit. Still, the stock rose after the company's stronger revenue outlook helped ease investor concerns.
JetBlue's earnings call is scheduled for Tuesday at 10 a.m. Eastern time.
The airline's third-quarter revenue rose 21% from a year ago to $2.81 billion, slightly below Wall Street's $2.83 billion estimate. But profits remained elusive. The carrier posted an adjusted loss of 60 cents a share, compared with a loss of 40 cents a year earlier. Analysts had expected a loss of 54 cents a share.
Even as JetBlue's revenue per available seat mile -- a measure of airline pricing strength -- jumped 18.4%, its loss widened as rising expenses continued to offset revenue gains. In the third quarter, JetBlue paid an average of $3.91 a gallon for jet fuel, up 57% from a year ago. Nonfuel costs per available seat mile also increased 7%.
Rising oil prices have pushed airlines to raise fares and cut back on flights, but the pressure on profits is uneven across the industry. Delta Air Lines earned an adjusted $1.72 a share in the third quarter, while United Airlines earned $2.54. Southwest Airlines earned 66 cents. American Airlines, meanwhile, posted an adjusted loss of 28 cents a share.
JetBlue has been among the industry's laggards. Its shares were down 48% this year through Monday's close, compared with the 14% gain for Delta and declines of 10% for United and 20% for American. JetBlue stock fell nearly 10% on Monday before the earnings release amid concerns about its debt.
Shares rebounded 15% in premarket trading Tuesday largely because JetBlue offered a more optimistic outlook. Management raised its full-year forecast for revenue per available seat mile growth to 13.5% to 14.5%, from 10% to 12.5% previously. The airline also said it had $2.2 billion in liquidity by the end of September and additional financing options available.
Management reiterated its goal of returning to sustained operating profits in 2027 and generating positive free cash flow in 2028. But with roughly $8.4 billion in debt, investors will be watching whether stronger fares can offset elevated fuel costs and ease pressure on JetBlue's finances.
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