JetBlue lost $257m in Q3 2026 as costs, led by fuel, outpaced a 21% revenue rise. Creditors have reportedly hired PJT and Akin Gump; the CEO says there are no talks.
Cover image: A JetBlue Airbus A220-300 seen from below (file photo) — photo by 4300streetcar, CC BY 4.0, via Wikimedia Commons.
JetBlue Airways lost US$257 million in the third quarter of 2026 even though revenue rose 21.1 per cent to $2.81 billion. The JetBlue Q3 2026 results, published on Monday 26 October, show fares climbing on much the same flying while costs, led by fuel, rose faster.
They came three days after Bloomberg reported that a group of JetBlue creditors, including holders of its $2 billion of bonds due 2031, was working with investment bank PJT Partners and law firm Akin Gump Strauss Hauer & Feld. Chief executive Joanna Geraghty pushed back on 27 October. "We are not in talks with our creditors," she told Reuters, adding that a debt restructuring was not under consideration.
What do JetBlue's Q3 2026 results show?
The average fare rose 19.2 per cent to $245.11 and revenue per available seat mile rose 18.4 per cent, on capacity up just 2.3 per cent. JetBlue said corporate revenue grew 25 per cent. At Fort Lauderdale, where capacity grew more than 65 per cent, unit revenue still rose nearly 15 per cent, Airways and AeroTime reported.
Costs rose faster: operating expenses were up 22.1 per cent to $2.956 billion, Airways said. The average fuel price rose 57 per cent to $3.91 a gallon, and the fuel bill rose to $868 million from $539 million. JetBlue said higher revenue recovered about 87 per cent of the fuel increase, Air Data News reported. Delta and Lufthansa have faced the same jet fuel squeeze.
The adjusted loss of 60 cents a share missed the 55-cent analyst consensus, according to LSEG data cited by Reuters. The quarter was also worse than the second, when JetBlue lost $247 million, as our report on its BlueFirst first class noted.
| Measure | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
| Revenue | $2.81bn | $2.32bn | +21.1% |
| Fuel price per gallon | $3.91 | $2.49 | +57% |
| Fuel expense | $868m | $539m | +61% |
| Operating loss | $144m | $100m | $44m wider |
| Net loss | $257m | $143m | $114m wider |
| Adjusted loss per share | $0.60 | $0.40 | 20 cents wider |
| Nine-month net loss | $823m | $425m | $398m wider |
Source: Air Data News, Airways, AeroTime (Reuters).
Why have JetBlue's creditors hired PJT Partners and Akin Gump?
Bloomberg, citing unnamed sources, said the group also includes holders of a $742 million first-lien loan, AeroTime reported. The Wall Street Journal reported that the hirings came as JetBlue contends with cash burn and elevated oil prices, TheStreet said.
Bond prices had already slid. The 2031 notes, which are backed by the TrueBlue loyalty programme, traded as low as 42 cents on the dollar on 22 October, against 80 cents earlier in the month, according to Financial Industry Regulatory Authority (FINRA) data cited by TheStreet. On 26 October they were at about 47 cents, with yields above 30 per cent, LSEG data cited by Reuters show.
JetBlue said in a statement that it "remains confident in its JetForward strategy", One Mile at a Time reported.
What has JetBlue's CEO said about the creditors?
Geraghty told Reuters that JetBlue was not seeking US government financial support. "Our results tell a very different story from what our bondholders are communicating out there in the market," she said.
JetBlue's quarterly filing says it has enough liquidity to meet its needs for at least the next 12 months, Reuters reported. It expects about $250 million of aircraft-backed financing in the fourth quarter and has about $7 billion of unencumbered assets.
How much cash and debt does JetBlue have?
Cash alone was $1.26 billion at the end of September, down from $1.95 billion at the end of 2025, according to Air Data News. Cash plus short-term investments was about $1.63 billion, down from $2.48 billion. JetBlue's $2.2 billion liquidity figure includes an undrawn $600 million credit facility.
Debt and finance-lease obligations total about $8.4 billion. Interest cost $149 million in the quarter, and JetBlue expects about $590 million for the year. Scheduled repayments are $477 million in 2027, $582 million in 2028 and $1.8 billion in 2029, Reuters reported from the filing.
For the fourth quarter JetBlue forecasts unit revenue up 18 to 22 per cent, with fuel at $4.64 a gallon, about 85 per cent above a year earlier.
It cut its full-year adjusted operating margin forecast to minus 6.5 to minus 4.5 per cent, from minus 5 to minus 2 per cent in July, but still targets an operating profit in 2027. Rivals' numbers are in our 2026 airline results tracker.
Frequently asked questions
Is JetBlue restructuring its debt?
Not according to the airline. Chief executive Joanna Geraghty told Reuters on 27 October that JetBlue is not in talks with its creditors and is not considering a debt restructuring. Its quarterly filing says it has enough liquidity for at least the next 12 months.
Who are PJT Partners and Akin Gump?
PJT Partners is an investment bank and Akin Gump Strauss Hauer & Feld is a law firm. Bloomberg reported on 23 October that a group of JetBlue creditors, including holders of its $2 billion of 2031 bonds, was working with both firms as advisers.
What are JetBlue's TrueBlue bonds worth?
The roughly $2 billion of TrueBlue-backed bonds traded at about 47 cents on the dollar on 26 October, yielding above 30 per cent, according to LSEG data cited by Reuters. FINRA data showed them as low as 42 cents on 22 October, TheStreet reported.
When does JetBlue expect to make a profit?
JetBlue still targets an operating profit in 2027 and positive free cash flow in 2028, Reuters reported. On 27 October executives said they were confident the airline could secure additional financing to support its turnaround through 2028. Its fourth-quarter outlook assumes fuel at $4.64 a gallon.
Sources
- Air Data News, JetBlue still loses US$257m
- Airways, JetBlue posts US$257m Q3 loss
- Reuters via AJOT, JetBlue CEO says no creditor talks
- AeroTime, JetBlue defends its finances
- TheStreet via Yahoo Finance, JetBlue creditors hire advisers
- One Mile at a Time, JetBlue creditors hire advisers
- View from the Wing, TrueBlue-backed debt hits 42 cents
