JetBlue Q2 Earnings: Revenue Rises, Loss Widens
JetBlue Q2 earnings showed $2.7B revenue and an adjusted $0.66 loss while fuel costs widened GAAP loss, focusing traders on guidance versus cost risk.
KEY TAKEAWAYS
- Operating revenue reached $2.7 billion and RASM rose 10.9% year over year.
- Net loss widened to $247 million while adjusted results showed a $0.66 per-share loss.
- Company reinstated full-year guidance and set a 2028 EPS target of at least $1.00 per share.
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JetBlue Airways (JBLU) reported second-quarter 2026 results on July 28, reinstating its full-year outlook and setting a 2028 earnings-per-share (EPS) target after stronger revenue and adjusted results, even as higher fuel costs widened the quarterly loss.
Quarter Results and Costs
The company said operating revenue reached $2.7 billion, with revenue per available seat mile (RASM) rising 10.9% year over year. JetBlue attributed the gains to resilient demand and higher fares.
JetBlue posted a net loss of $247 million, wider than the $74 million loss a year earlier, and reported an adjusted loss of $0.66 per share. The wider GAAP loss reflected sharply higher fuel costs and operational disruptions.
Fuel costs averaged $4.23 per gallon in the quarter. The company recaptured nearly 50% of the higher fuel costs, exceeding its prior internal expectations of 30% to 40%. Cost per available seat mile (CASM) increased 17.0% year over year, while CASM excluding fuel rose 2.4%, indicating underlying cost trends without fuel effects.
System capacity grew 3.2% year over year, within the company’s revised guidance range of 2.0% to 4.0%. Capital expenditures, including predelivery deposits, totaled $234 million in the quarter.
Outlook and Profit Target
JetBlue reinstated its full-year 2026 guidance, expecting RASM growth of 10.0% to 12.5%, available seat mile (ASM) growth of 1.5% to 3.5%, and CASM excluding fuel growth of 2.0% to 4.0%. The guidance reflects stronger demand, higher fares, and better-than-expected fuel-cost recovery during the quarter.
The company set a 2028 EPS target of at least $1.00 per share. Its JetForward cost program generated $470 million of cumulative incremental earnings before interest and taxes (EBIT) through June 2026, supporting the longer-term profitability roadmap.
