JetBlue Airways reported a wider loss in the third quarter compared to last year, but the New York airline said strong travel demand is helping to offset higher fuel prices as it seeks to calm investors after shares fell to a new low on Monday. JetBlue shares soared about 11% in after-hours trading on Monday. The airline’s fuel bill rose 61% to $868 million. “Resilient demand and strong yields drove revenue well above our initial expectations, allowing us to recover more of the increase in fuel costs than we initially expected,” CEO Joanna Geraghty said in an earnings release. “That momentum has continued into the fourth quarter, and Fort Lauderdale continues to deliver exceptional results even as we significantly increase capacity.” JetBlue’s average fares rose more than 19% to $245.11 in the third quarter from $205.67 in the same period a year ago. JetBlue executives will hold an earnings conference call 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 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. JetBlue had total debt of $8.4 billion as of Sept. 30, the airline said in its earnings presentation Monday. “Importantly, we believe we have the liquidity and financing options to create a strong bridge to at least $1 EPS and positive free cash flow in 2028,” Chief Financial Officer Ursula Hurley said in a statement. “We remain focused on disciplined cost execution and capital management as we work toward sustained profitability and positive free cash flow.” Here’s what JetBlue reported in the third quarter compared to Wall Street estimates compiled by LSEG: Loss per share: Adjusted 60 cents vs. an expected loss of 55 cents Revenue: $2.81 billion vs. $2.82 billion expected JetBlue last posted an annual profit in 2019. The airline is in the midst of a multi-year turnaround plan that includes cutting cuts and boosting revenue by investing in premium seats, such as a new domestic first class section that recently went on sale. Fuel costs have hit airline profits across the board. JetBlue said travel demand has remained strong despite higher fares, which have increased more than 20% this year. JetBlue has struggled not only with higher costs but also with competition from larger rivals. It attempted to acquire the now-defunct airline Spirit Airlines, but that deal was struck down by a federal judge who ruled it was anticompetitive. A judge also blocked a regional partnership between JetBlue and American Airlines, which the airlines said would help them better compete against airlines in the congested northeastern U.S. JetBlue now has a partnership with United Airlines.
