JetBlue reported a wider third-quarter loss as fuel costs climbed, but raised its full-year unit revenue forecast. Shares jumped after hours following a drop tied to reports that creditors were working with restructuring advisers.
JetBlue Airways posted a net loss of $257 million for the three months ended Sept. 30, up from a loss of $143 million a year earlier. The carrier's fuel bill rose 61% to $868 million, CNBC reported.
The result came in worse than analysts expected. JetBlue posted an adjusted loss of 60 cents per share, against a 40-cent loss a year earlier, while analysts polled by LSEG expected a loss of 55 cents. Revenue of $2.81 billion fell just short of the $2.82 billion expected.
Fuel outpaces fare increases
Reuters reported that jet fuel prices have risen faster than airline fare hikes. JetBlue said it paid an average of $3.91 per gallon in the July-September quarter, up 57% from a year ago. Unit revenue rose 18.4%.
Even so, demand held up. CEO Joanna Geraghty said in the earnings release: "Resilient demand and strong yields drove revenue well ahead of our initial expectations." That momentum, she added, carried into the fourth quarter.
The airline also raised its full-year unit revenue growth forecast to 13.5% to 14.5%, from an earlier range of 10% to 12.5%.
Investors weigh debt concerns
Debt concerns weighed on the stock before the report. JetBlue shares had closed down nearly 10% after reports that creditors were working with restructuring advisers, then jumped 8% in choppy trading after the bell. CNBC noted the shares are down more than 40% this month.
The company said it ended the quarter with $2.2 billion in liquidity and a $7 billion unencumbered asset base, including $2.8 billion in aircraft and engines.
Executives are set to face analyst questions on the company's long-term health during an earnings call on Tuesday at 10 a.m. ET.
Sources: CNBC, Reuters via Investing.com
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