JetBlue reported a wider third-quarter loss Monday as a sharp rise in fuel costs outweighed stronger ticket revenue, while the airline said improved pricing and travel demand helped it recover most of the increase in its fuel bill.
The New York-based carrier posted a net loss of $257 million for the three months ended September 30, compared with a $143 million loss a year earlier. Revenue increased 21.1% to $2.8 billion, according to its quarterly earnings release.
Revenue per available seat mile, a measure of how much an airline generates for each unit of flying capacity, rose 18.4%. Capacity increased 2.3% from the same quarter last year.
Those gains came alongside steep cost pressure. JetBlue paid an average of $3.91 a gallon for fuel, 57% more than a year earlier. Operating cost per available seat mile increased 19.4%. Excluding fuel, other non-airline operating expenses and special items, unit costs rose 7%, a non-GAAP measure.
Chief executive Joanna Geraghty said resilient demand and strong yields allowed the airline to recover more of the increase in fuel costs than it initially expected. JetBlue said it recaptured approximately 87% of those higher costs during the quarter.
The carrier ended September with $2.2 billion of liquidity, including a $600 million undrawn credit facility. It also said it had approximately $7 billion of unencumbered assets, providing potential financing flexibility. An additional $250 million of aircraft-backed financing is expected to fund in the fourth quarter, subject to customary funding mechanics.
JetBlue said its Fort Lauderdale revenue per available seat mile grew nearly 15% despite capacity growth of more than 65%. The airline is adding destinations and frequencies there as part of its network changes.
Its new BlueFirst domestic first-class service is scheduled to begin December 8 between Boston and Fort Lauderdale, with more routes to follow in phases. JetBlue will discuss the quarterly results on a conference call Tuesday, October 27, at 10 a.m. Eastern time.
JBizNews Desk | New York
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