JetBlue CEO Joanna Geraghty told investors that the carrier has sufficient liquidity and borrowing capacity to fund operations through 2028. She stated that the airline can meet its obligations and still work toward a cash-flow positive year. The balance sheet shows $2.2 billion in liquidity as of Sept. 30, which includes $600 million of undrawn credit facilities, and the airline also reports $7 billion in unencumbered assets, such as $2.8 billion in aircraft and engines. Management highlighted that projected fuel costs for the current quarter are $4.64 per gallon, a figure that will shape near-term cash requirements.
Joanna Geraghty remains focused on operating profitably in 2027, and she sees multiple paths to at least $1 in earnings per share and positive free cash flow in 2028. Geraghty added that the liquidity bridge supports these targets. Year-over-year operating revenue rose 21.2%, reflecting stronger demand on key routes. For the third quarter, JetBlue posted a net loss of $157 million and an operating loss of 5.1%, equivalent to $144 million, while cumulative losses through the first three quarters total $823 million.
Executives emphasized that a 57% jump in fuel expenses obscured the positive impact of customer-experience upgrades, including the rollout of the airline’s first lounges and the December launch of the BlueFirst first-class cabin, which they expect to drive higher yields in future periods. These measures are expected to improve load factor and ancillary revenue streams.
A Wall Street Journal story cited anonymous sources saying senior creditors have engaged PJT Partners and legal counsel due to worries about repayment. The report highlighted concerns that the airline might default on its loans. Despite the Wall Street Journal report, the market reacted positively on Tuesday, with JetBlue shares closing 19% higher, suggesting that the liquidity bridge narrative resonated with investors.
Investors have been uneasy because the carrier posted consecutive years of losses and faces soaring fuel prices. Since early August, the stock has fallen more than 50%. The carrier’s forward-looking model assumes fuel prices of slightly above $4 per gallon next year and around $3 per gallon by 2028, a steep decline from current levels that underpins its path to operating profit and free cash flow.