JetBlue posts bigger loss on fuel costs, but CEO says margins improving — SkimNews
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- JetBlue reported a third-quarter net loss of $257 million, compared with $143 million a year earlier; adjusted loss per share was 60 cents versus LSEG's expected 55-cent loss, while revenue of $2.81 billion nearly matched the $2.82 billion estimate.
- JetBlue's fuel bill rose 61% to $868 million, while average fares increased more than 19% to $245.11 from $205.67 a year earlier.
- Joanna Geraghty said resilient demand and strong yields drove revenue well ahead of initial expectations and allowed JetBlue to recapture more of its fuel-cost increase; she said that momentum carried into the fourth quarter.
- Ursula Hurley said JetBlue believes it has the liquidity and financing options for a bridge to at least $1 EPS and positive free cash flow in 2028, with continued cost execution and capital management.
- JetBlue ended the quarter with $2.2 billion in liquidity and a $7 billion unencumbered asset base, including $2.8 billion in aircraft and engines, while total debt stood at $8.4 billion as of Sept. 30.
- PJT Partners is reportedly working with a group of JetBlue's senior creditors as a restructuring adviser.
- JetBlue shares fell to a new low Monday before rising roughly 11% in after-hours trading following the earnings release.
Why it matters: For senior creditors and shareholders, JetBlue's $8.4 billion debt load against $2.2 billion in liquidity makes financing a central issue, as a creditor group reportedly works with PJT Partners. The roughly 11% after-hours stock rally contrasts sharply with those balance-sheet figures and management's at-least-$1 EPS target for 2028.
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