JetBlue Airways reported a bigger loss in the third quarter compared with last year, but the New York carrier said strong travel demand is helping to offset higher fuel prices as it seeks to calm investors after shares fell to a new low Monday.
JetBlue stock was up nearly 15% in premarket trading Tuesday
JetBlue on Monday posted a net loss of $257 million for the three months ended Sept. 30, compared with a loss of $143 million a year earlier. The carrier’s fuel bill rose 61% to $868 million. “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,” CEO Joanna Geraghty said in an earnings release. “That momentum has carried into the fourth quarter, and Fort Lauderdale continues to deliver exceptional results even as we significantly grow capacity.” JetBlue’s average fares rose more than 19% to $245.11 in the third quarter from $205.67 in the year-earlier period. JetBlue executives are set to hold an earnings call on Tuesday at 10 a.m.
ET, where they will face questions from analysts about the company’s long-term health amid sustained losses. A group of the airline’s senior creditors is reportedly working with restructuring adviser PJT Partners, the Wall Street Journal reported Friday. The airline said its revenue per available seat mile, a key metric measuring how much operating revenue a carrier generates for every seat flown one mile, would be up as much as 22% in the fourth quarter, bringing the annual increase to an expected 13.5% to 14.5% The carrier said it ended the quarter with $2.2 billion in liquidity and that its unencumbered asset base is now $7 billion, including $2.8 billion in aircraft and engines.