JetBlue loss widens to $247M as fuel costs surge 76% in Q2

JetBlue Airways posted a Q2 net loss of $247 million as fuel costs surged 76%, though revenue of $2.70 billion met expectations.

"Two years into JetForward, we're encouraged by the progress we're making and the results we're driving across the business," Joanna Geraghty, JetBlue's chief executive officer, said. "Our second quarter performance reflects the strength of our JetForward strategy and the focused execution of our crewmembers, as strong customer demand and our decisive actions enabled us to recover fuel costs more quickly than we anticipated."

Metric	Actual	Consensus	Beat/Miss
Revenue	$2.70B	$2.70B	-0.2%
EPS	-$0.66	-$0.68	+$0.02
RASM growth	+10.9%	—	—

The New York-based carrier reported a per-share loss of 66 cents, narrower than the 68-cent loss analysts had expected. Operating revenue rose 14.5% from a year earlier to $2.70 billion, driven by a 10.9% increase in revenue per available seat mile. The airline recaptured nearly 50% of higher fuel costs during the quarter, exceeding its initial expectations.

Fuel expenses more than doubled to $911 million from $504 million a year earlier, as the average fuel price climbed to $4.23 per gallon from $2.40. That pushed total operating expenses up 20.8% to $2.84 billion and swung the company to an operating loss of $141 million from operating income of $6 million a year ago. Load factor improved to 82.7% from 81.9%, while capacity rose 3.2%.

JetBlue said its JetForward transformation strategy has generated $470 million of cumulative incremental earnings before interest and taxes through June, on track toward its target of $850 million to $950 million in annual EBIT benefit by year-end 2027. The airline introduced a long-term financial target of at least $1.00 in earnings per share for 2028, assuming an average jet fuel price of $3.00 per gallon.

For the third quarter, JetBlue expects RASM growth of 12.5% to 16.5% year-over-year and capacity growth of 3% to 6%. It forecast an average fuel price of $3.49 per gallon for both the third quarter and full year.

The guidance raise signals management expects its cost-recovery efforts and network changes to continue gaining traction. Investors will watch the third-quarter earnings report for further evidence that JetForward benefits are building toward the 2028 profit target.

This article is for informational purposes only and does not constitute investment advice.