JetBlue shares soar over 11% on strong revenue outlook despite Q3 miss

JetBlue Airways Corporation (NASDAQ:JBLU) experienced a 11.24% surge in its shares on Monday, reaching $2.64 in after-hours trading. This positive move came despite the company reporting a third-quarter loss that fell short of analyst expectations. The airline's shares had previously dropped 9.52% on Monday, trading at $2.38. The unexpected revenue growth and improved operating margins led to the bullish reaction from investors.

For the third quarter, JetBlue reported an adjusted loss of -$0.60 per share, which was higher than the estimated -$0.54. However, the company's revenue stood at $2.81 billion, slightly below the consensus estimate of $2.83 billion but representing a 21.1% increase compared to the same quarter last year. The company successfully offset higher fuel costs with an 18.4% growth in revenue per available seat mile (RASM), nearly recouping 87% of the additional expenses driven by a 57% year-over-year increase in fuel prices.

In its fourth-quarter guidance, JetBlue anticipates RASM growth between 18.0% and 22.0%, with a projected operating margin expansion of 1 to 2 points despite fuel prices being 85% higher than the previous year. CEO Joanna Geraghty expressed optimism about the company's performance, crediting resilient demand and strong yields for surpassing initial expectations. Fort Lauderdale operations, in particular, showcased strong results, with RASM increasing by nearly 15% due to over 65% capacity growth.

Looking ahead to 2026, JetBlue expects RASM growth between 13.5% and 14.5% and an adjusted operating margin between -4.5% and -6.5%. The company also reiterated its confidence in achieving at least $1 EPS and positive free cash flow by 2028.