JetBlue Airways — Third Quarter 2026 Earnings Summary

Financial Performance:

• Operating revenue for Q3 2026 reached $2.8 billion, a 21.1% increase year-over-year.
• Revenue per available seat mile (RASM) increased 18.4% year-over-year, exceeding initial expectations.
• Operating expense per available seat mile (CASM) rose 19.4% year-over-year, driven by higher fuel prices.
• CASM excluding fuel, other non-airline operating expenses, and special items increased 7.0% year-over-year.
• Average fuel price was $3.91 per gallon, 57% higher than the prior year period.
• Operating loss for Q3 2026 was $144 million, compared to a $100 million loss in Q3 2025.
• Net loss for Q3 2026 was $257 million, compared to a $143 million loss in Q3 2025.
• Loss per diluted share was $0.68 for Q3 2026, compared to $0.39 in Q3 2025.
• Total operating expenses for Q3 2026 were $2.956 billion, up 22.1% year-over-year.
• Capital expenditures, including predelivery deposits, totaled $189 million in Q3 2026.
• Liquidity at the end of Q3 2026 was $2.2 billion, including a $600 million undrawn credit facility.
• Total debt stood at $8.393 billion as of September 30, 2026, down from $8.498 billion at December 31, 2025.
• Stockholders' equity was $1.337 billion as of September 30, 2026, down from $2.120 billion at December 31, 2025.

Guidance and Future Outlook:

• JetBlue expects 1–2 points of year-over-year operating margin expansion in the fourth quarter.
• Full-year 2026 adjusted operating margin is estimated between -4.5% and -6.5%.
• Full-year 2026 capital expenditures are estimated at approximately $850 million.
• Full-year 2026 interest expense is estimated at approximately $590 million.
• Full-year 2026 fuel price is estimated at $3.95 per gallon.
• Full-year 2026 available seat miles (ASMs) are expected to grow 1.5% to 2.5% year-over-year.
• Full-year 2026 RASM is expected to grow 13.5% to 14.5% year-over-year.
• Full-year 2026 CASM ex-Fuel is expected to grow 3.5% to 4.5% year-over-year.
• Fourth quarter 2026 ASMs are expected to grow 3.0% to 4.0% year-over-year.
• Fourth quarter 2026 RASM is expected to grow 18.0% to 22.0% year-over-year.
• Fourth quarter 2026 CASM ex-Fuel is expected to change between -1.0% and 1.0% year-over-year.
• Fourth quarter 2026 fuel price is estimated at $4.64 per gallon.
• Management targets sustained operating profitability in 2027 and at least $1 EPS and positive free cash flow in 2028.
• Management expects a meaningful step-down in fourth-quarter unit-cost growth excluding fuel.

Business Segments and Product Lines:

• Fort Lauderdale RASM increased nearly 15% on more than 65% capacity growth.
• Fort Lauderdale peak daily departures are planned to exceed 150 this winter, up 39% year-over-year.
• JetBlue's fourth quarter seat share in Fort Lauderdale is expected to reach approximately 37%, up 14 points year-over-year.
• Co-brand credit card acquisitions in Broward County increased 55% year-over-year in the third quarter.
• Launched sales for BlueFirst™, a new domestic first-class experience, across more than 30 routes, with initial service beginning December 8 between Boston and Fort Lauderdale.
• Paisly delivered its strongest financial results ever in the third quarter.
• MileagePlus Travel rental car bookings have outpaced United's previous provider since launch.
• Opened BlueHouse™ Boston to enhance the premium customer experience.
• Completed the transition to an upgraded revenue management system, delivering early benefits through improved forecast accuracy.
• Loyalty revenue grew 20% year-over-year in the third quarter.
• Premier Card acquisitions grew more than eightfold following the card refresh.
• TrueBlue members redeemed more than 1.1 billion points on United flights since the partnership launched.
• Both premium and Main cabin achieved double-digit RASM growth.

Market and Competitive Landscape:

• Revenue strength has extended beyond the peak summer season into the fourth quarter.
• Demand remained resilient across peak and off-peak travel periods despite higher fuel costs.
• Continued expansion with 15 new destinations and increased frequencies strengthens local schedules and connecting itineraries.
• The airline is recapturing approximately 87% of higher fuel costs.
• The industry is described as extremely competitive.

Risks and Challenges:

• Fuel prices are forecasted to be 85% higher in the fourth quarter compared to the same period last year.
• Approximately four points of disruption-related pressure impacted underlying unit cost performance in the third quarter.
• Risks include volatility in fuel prices, increased maintenance costs associated with fleet age, and reliance on high daily aircraft utilization.
• Potential risks include material reduction in interchange reimbursement fees, international business risks, and reliance on a limited number of suppliers for aircraft and Fly-Fi®.
• Risks associated with extended interruptions or disruptions in service at focus cities, including two aircraft impacted by Pratt & Whitney engine groundings.
• Risks related to labor, including potential unionization, work stoppages, and increased labor costs.
• Risks associated with cybersecurity, data security compliance, and reliance on automated systems.
• Risks related to regulatory requirements, environmental laws, and federal government shutdowns or budget constraints.

Management Commentary and Tone:

• CEO Joanna Geraghty expressed encouragement regarding progress, citing resilient demand and strong yields driving revenue ahead of expectations.
• CFO Ursula Hurley stated that the company has liquidity and financing options to bridge to the $1 EPS and positive free cash flow targets in 2028.
• President Marty St. George highlighted meaningful runway for growth as commercial initiatives mature, citing benefits from enhanced revenue management and loyalty engagement.
• Management remains focused on disciplined cost execution and capital management.
• The tone reflects confidence in the JetForward strategy improving revenues and costs heading into 2027.

Other Key Points:

• An additional $250 million of aircraft-backed financing is expected to fund in the fourth quarter.
• The unencumbered asset base expanded to approximately $7 billion, including $2.8 billion in aircraft and engines following updated appraisals.
• Capital expenditures exclude one Airbus A321neo XLR, which JetBlue expects to sell.
• The estimated effective tax rate for the full year 2026 is approximately 6%, primarily reflecting a non-cash impact from a valuation allowance.
• Special items for the three and nine months ended September 30, 2026, included an adjustment to litigation reserves.
• Special items for the three and nine months ended September 30, 2025, included severance expenses and other special items.
• A conference call to discuss quarterly earnings is scheduled for October 27, 2026, at 10:00 a.m. Eastern Time.