JetBlue (NASDAQ: JBLU), the US airline, was up about 15% in after-hours trading by about 9.20pm in London after it reported third-quarter results a day earlier than scheduled. Earlier reports put the gain at 11% to 13%, and it may change at tomorrow’s open.
The rebound follows a rough regular session. The shares fell about 9.9% to $2.37 today, from $2.63 on Friday, and touched a record low of $2.16. About 74.6m shares changed hands. They are down about 56.5% since the 20th of July.
The selling came amid reports, citing anonymous sources, that senior creditors are working with restructuring advisers PJT Partners and Akin Gump. Bloomberg said the creditors hold $2bn of bonds due 2031 and a $742m first-lien loan, with the bonds trading at about 45 cents on the dollar.
The company said it lost $257m in the quarter, against $143m a year earlier. The adjusted loss was $0.60 a share, wider than the $0.55 loss analysts expected. Revenue rose 21.1% to $2.81bn, just short of the $2.82bn forecast.
Fuel was the drag. Fuel expense rose 61% to $868m as the average price climbed 57% to $3.91 a gallon. Chief executive Joanna Geraghty said revenue had beaten the company’s own plan.
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.
Joanna Geraghty, chief executive, JetBlue
The average fare rose 19.2% to $245.11 on capacity up 2.3%, while the load factor, the share of seats filled, slipped 1.5 points to 83.6%. Liquidity stands at $2.2bn, including a $600m undrawn facility, against total debt of $8.4bn.
Chief financial officer Ursula Hurley said the company has the liquidity and financing options to bridge to at least $1 of earnings per share and positive free cash flow in 2028. Management reaffirmed that target and said it is on track for sustained profitability in 2027. JetBlue has not posted an annual profit since 2019.
The fourth-quarter outlook assumes fuel at $4.64 a gallon, and full-year adjusted operating margin is guided at negative 4.5% to negative 6.5%. The earnings call is tomorrow at 10am in New York, 2pm in London.