JBLU's Q3 Loss Narrower Than Expected, Revenues Decline Y/Y

JetBlue Airways Corporation JBLU reported a third-quarter 2025 loss of 40 cents per share, narrower than the Zacks Consensus Estimate of a loss of 43 cents. Lower fuel costs aided the bottom line. Strong demand for premium travel also aided results. In the year-ago quarter, JBLU reported a loss of 16 cents per share.

Operating revenues of $2.32 billion narrowly missed the Zacks Consensus Estimate and decreased 1.8% year over year. Passenger revenues, accounting for the bulk of the top line (91.9%), declined 2.9% year over year to $2.13 billion. The figure was just ahead of our estimate of $2.11 billion. Other revenues rose 12% year over year to $187 million,  above our estimate of $184 million.

JetBlue Airways Price, Consensus and EPS Surprise

JetBlue Airways price-consensus-eps-surprise-chart | JetBlue Airways  Quote

Other Details of JBLU’s Q3 Earnings

Revenue per available seat mile (RASM: a key measure of unit revenues) decreased 2.7% year over year to 13.75 cents. Passenger revenue per available seat mile declined 3.7% year over year to 12.65 cents. The average fare at JetBlue, currently carrying a Zacks Rank #3 (Hold), inched down 0.9% year over year to $205.67. The yield per passenger mile decreased 2% year over year. 

Consolidated traffic (measured in revenue passenger miles) declined 0.8% year over year. Capacity (measured in available seat miles) inched up 0.9% year over year. Consolidated load factor (percentage of seats filled by passengers) declined 1.5 percentage points to 85.1% as the traffic declined while capacity expanded. Our estimate for load factor was 85.7%.

Total operating costs (on a reported basis) inched up 0.8% year over year to $2.4 billion. Expenses on salaries, wages and benefits increased 4.5% year over year. Aircraft fuel expenses declined 7.6% year over year.

The average fuel price per gallon (including related taxes) was $2.49, down 6.8% year over year. JBLU’s operating expenses per available seat mile (“CASM”) decreased 0.1% year over year. Excluding fuel, CASM rose 3.7% to 11.02 cents.

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JBLU’s Outlook

For fourth-quarter 2025, capacity is anticipated to either decline 0.75% or increase 2.25% from third-quarter 2024 actuals. CASM, excluding fuel and special items, is predicted to climb 3-5%. Capital expenditures are expected to be roughly $300 million. RASM is forecasted to be either flat or decline up to 4% from fourth-quarter 2024 actuals. The average fuel cost per gallon is estimated to be between $2.33 and $2.48.

For 2025, capital expenditures are expected to be roughly $1.1 billion. Interest expenses are anticipated to be around $590 million. CASM, excluding fuel and special items, is predicted to climb 5-6%. Capacity is forecasted to be either flat or decline up to 2% from 2024 actuals.

Q3 Performances of Some Other Airline Companies

Delta Air Lines DAL reported third-quarter 2025 earnings (excluding 46 cents from non-recurring items) of $1.71 per share, which beat the Zacks Consensus Estimate of $1.52. Earnings increased 14% on a year-over-year basis due to low fuel costs.

Revenues in the September-end quarter were $16.67 billion, beating the Zacks Consensus Estimate of $15.79 billion and increasing 6.4% on a year-over-year basis. Due to improving air-travel demand, adjusted operating revenues (excluding third-party refinery sales) increased 4.1% year over year to $15.2 billion. 

United Airlines UAL reported mixed third-quarter 2025 results wherein its earnings beat the Zacks Consensus Estimate, but revenues missed the same.

UAL's third-quarter 2025 adjusted earnings per share (excluding 12 cents from non-recurring items) of $2.78 surpassed the Zacks Consensus Estimate of $2.64 but declined 16.5% on a year-over-year basis. The reported figure lies above the guided range of $2.25-$2.75.

Operating revenues of $15.2 billion fell short of the Zacks Consensus Estimate of $15.3 billion but increased 2.6% year over year. Passenger revenues (which accounted for 90.7% of the top line) increased 1.9% year over year to $13.8 billion. UAL flights transported 48,382 passengers in the third quarter, up 6.2% year over year.  

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This article originally published on Zacks Investment Research (zacks.com).

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