Shares of JetBlue Airways (NASDAQ:JBLU) fell 1.93% in premarket trading on Tuesday, after the airline reported a smaller-than-expected third-quarter loss, supported by cost-saving initiatives and improving travel demand.
The company posted an adjusted loss of $0.40 per share, beating analyst forecasts for a $0.43 per share loss. Revenue totaled $2.32 billion, matching Wall Street expectations but declining 1.8% year over year. Operating revenue per available seat mile (RASM) fell 2.7% YoY but landed at the better end of the company’s guidance range.
“JetBlue’s progress toward profitability is gaining momentum as a result of the swift actions we’ve taken to implement our JetForward strategy and set a strong foundation for 2026,” said Joanna Geraghty, CEO of JetBlue. “Revenue and costs came in at the better half of their respective guidance ranges, significantly improving our financial performance throughout the quarter.”
The airline’s JetForward initiative remains on track to deliver $290 million in incremental EBIT by year-end. Operating expenses per available seat mile excluding fuel increased 3.7% YoY, also coming in near the better end of guidance thanks to tighter operational controls.
For the fourth quarter, JetBlue forecasts capacity between a 0.75% decline and a 2.25% increase year over year. RASM is expected to range from a 4.0% decline to flat. The company also raised its full-year cost outlook by half a percentage point, despite slightly reduced capacity.
“We are pleased with the progress we’ve made in the second half toward reaching our $290 million cumulative JetForward target, and we’re excited about the momentum we have heading into 2026,” said Ursula Hurley, CFO of JetBlue.
JetBlue is also expanding its network in Fort Lauderdale — where it remains the largest carrier — with plans to launch 17 new routes and increase frequencies on 12 high-demand routes in 2025.