JetBlue Q3 2026 earnings: loss widens to $257M
As of September 30, 2026, JetBlue had two aircraft grounded for engine availability and expected groundings to remain in the single digits for the rest of 2026.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
10-Q
Rhea-AI Filing Summary
JetBlue Airways Corporation reported third-quarter 2026 operating revenue of $2.812 billion, up 21.1% year over year, while operating expenses rose 22.1% to $2.956 billion. Net loss was $257 million versus $143 million a year earlier, and operating loss was $144 million versus $100 million. JetBlue attributed the pressures to higher fuel prices and operational disruptions, including severe weather and air-traffic-control constraints in its Northeast markets; average fuel price rose 57.4% to $3.91 per gallon.
For the nine months ended September 30, 2026, revenue was $7.749 billion, up 13.7%; net loss was $823 million versus $425 million, and operating cash used was $273 million versus $143 million. As of September 30, liquidity was $2.2 billion, including $1.6 billion in unrestricted cash, cash equivalents and investment securities and a $600 million undrawn Citibank line.
JetBlue met requirements to access an additional $250 million in aircraft-secured financing; funding was expected in the fourth quarter of 2026, subject to completion of customary funding mechanics. Following regulatory approval, it completed the acquisition of 22 operating authorizations at LaGuardia in October 2026.
1 point · 0 major1 major · 3 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointThird-quarter revenue increased 21.1% to $2.812 billion year over year.
Negative
- Major pointThird-quarter net loss was $257 million, versus $143 million in 2025.
- Moderate pointAverage fuel price rose 57.4% to $3.91 per gallon in Q3.
- Moderate pointNine-month operating cash use was $273 million, versus $143 million in 2025.
Filing Explained
JetBlue reported 377,351,854 common shares outstanding on
Key Figures
Operating revenue: $2.812 billion; up 21.1% year over year
Net loss: $257 million
Operating loss: $144 million
+5 more
8 metrics
Operating revenue
$2.812 billion; up 21.1% year over year
Three months ended September 30, 2026
Net loss
$257 million
Three months ended September 30, 2026; compared with $143 million in 2025
Operating loss
$144 million
Three months ended September 30, 2026; compared with $100 million in 2025
Average fuel price
$3.91 per gallon; up 57.4%
Third quarter of 2026 year over year
Net cash used in operating activities
$273 million
Nine months ended September 30, 2026; compared with $143 million in 2025
Liquidity
$2.2 billion
As of September 30, 2026
Additional aircraft-secured financing
$250 million
Funding expected in the fourth quarter of 2026, subject to completion of customary funding mechanics
Operating authorizations
22
Acquired at LaGuardia Airport in October 2026 following regulatory approval
Key Terms
CASM ex-fuel, available seat miles, Yield, air traffic liability, +1 more
5 terms
CASM ex-fuel financial
"cost per available seat mile ("CASM ex-fuel")"
CASM ex-fuel is a measure airlines use to show the operating cost to fly one seat one mile, with fuel expenses removed. Think of it as the base cost of running the plane — like comparing the price of a car ride without counting gas — which helps investors see underlying efficiency and compare performance across periods or carriers without the swings caused by volatile fuel prices.
available seat miles technical
"available seat miles, which represents the number of seats available"
Available seat miles measure the total capacity of an airline to carry passengers, calculated by multiplying the number of seats available on all flights by the distance those flights cover. It indicates how much space an airline has to generate revenue from passenger travel. For investors, higher available seat miles generally suggest a larger operation and potential for increased earnings.
Yield financial
"Yield, or the average amount one passenger pays to fly one mile"
Yield is the income an investment generates, expressed as a percentage of the money you put in or the asset’s current price — for example, interest from a bond or dividends from a stock. It matters to investors because it shows how much cash return they can expect relative to cost, much like comparing the annual rent you get from a house to what you paid for it, and helps assess income versus risk and price changes.
air traffic liability financial
"air traffic liability - passenger travel"
Enhanced Equipment Trust Certificates financial
"financed certain aircraft with Enhanced Equipment Trust Certificates"
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much did JetBlue (JBLU) lose in the third quarter of 2026?
JetBlue reported a third-quarter 2026 net loss of $257 million, compared with $143 million in the 2025 quarter. Its operating loss was $144 million versus $100 million, and diluted loss per share was $0.68 versus $0.39.
What aircraft financing is JetBlue (JBLU) expecting in the fourth quarter of 2026?
JetBlue satisfied the requirements to access an additional $250 million under its aircraft-secured financing agreement, including delivery of the required advance notice. Funding was expected in the fourth quarter of 2026, subject to completion of customary funding mechanics.
How many JetBlue (JBLU) aircraft were grounded because of engine availability?
As of September 30, 2026, two aircraft were grounded due to lack of engine availability. JetBlue expected the number grounded for this reason to remain in the single digits for the remainder of 2026. Shop visits and return to service were expected to take approximately 170 days for PW1500G engines and approximately 270 days for PW1100G engines.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
For the quarterly period ended September 30, 2026
or
For the transition period from __________ to__________
Commission File Number: 000-49728
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||
(718 ) 286-7900
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☑ Yes ☐ No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☑ Yes ☐ No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
| ☑ | Accelerated filer | ☐ | ||||||||||||
| Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||
| Emerging growth company | ||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑
As of September 30, 2026, there were 377,351,854 shares outstanding of the registrant's common stock, par value $0.01.
Table of Contents
JETBLUE AIRWAYS CORPORATION
FORM 10-Q
INDEX
| Page | |||||
Forward-Looking Information | 3 | ||||
PART I. FINANCIAL INFORMATION | |||||
Item 1. Financial Statements | 5 | ||||
Consolidated Balance Sheets - September 30, 2026 and December 31, 2025 | 5 | ||||
Consolidated Statements of Operations - Three and Nine Months Ended September 30, 2026 and 2025 | 7 | ||||
Consolidated Statements of Comprehensive Loss - Three and Nine Months Ended September 30, 2026 and 2025 | 8 | ||||
Condensed Consolidated Statements of Cash Flows - Nine Months Ended September 30, 2026 and 2025 | 9 | ||||
Consolidated Statements of Stockholders' Equity - Three and Nine Months Ended September 30, 2026 and 2025 | 10 | ||||
Notes to Condensed Consolidated Financial Statements | 11 | ||||
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | 24 | ||||
Item 3. Quantitative and Qualitative Disclosures About Market Risk | 41 | ||||
Item 4. Controls and Procedures | 41 | ||||
PART II. OTHER INFORMATION | |||||
Item 1. Legal Proceedings | 42 | ||||
Item 1A. Risk Factors | 42 | ||||
Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities | 42 | ||||
Item 5. Other Information | 42 | ||||
Item 6. Exhibits | 43 | ||||
SIGNATURE | 44 | ||||
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Table of Contents
Forward-Looking Information
This Quarterly Report on Form 10-Q (the "Report") contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical facts contained in this Report are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "expects," "plans," "intends," "anticipates," "indicates," "remains," "believes," "estimates," "forecast," "guidance," "outlook," "may," "will," "should," "seeks," "goals," "targets" or the negative of these terms or other similar expressions. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties, or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed, or assured. Forward-looking statements contained in this Report include, without limitation, statements regarding our outlook, goals, and future results of operations and financial position, including our intended path to profitability, positive free cash flow, earnings targets and related assumptions, any expected headwinds or tailwinds, fuel prices and volatility, demand, our use of artificial intelligence, our aircraft fleet, our product offerings and loyalty initiatives, and our business strategy and plans and objectives for future operations, such as our JetForward initiatives, our Blue Sky collaboration, BlueFirstTM product launch, expected growth opportunities at select airports, our financing arrangements and potential implications thereof on our business, our sustainability initiatives, the impact of industry conditions, our ability to adjust pricing in response to changes in fuel costs or demand, and the related impacts on our business. Forward-looking statements involve risks, uncertainties and assumptions, and are based on information currently available to us. Actual results may differ materially from those expressed in the forward-looking statements due to many important factors, including, without limitation, our extremely competitive industry; the risk associated with the execution of our strategic operating plans in the near-term and long-term; risks related to the long-term nature of our fleet order book; volatility in fuel prices and availability of fuel; increased maintenance costs associated with fleet age; costs associated with salaries, wages and benefits; risks associated with a potential material reduction in the rate of interchange reimbursement fees; risks associated with doing business internationally; our reliance on high daily aircraft utilization; our dependence on the New York metropolitan market; risks associated with extended interruptions or disruptions in service at our focus cities; risks associated with airport expenses; risks associated with seasonality and weather; our reliance on a limited number of suppliers for our aircraft, engines, and our Fly-Fi® product; risks related to new or increased tariffs, including those that impact commercial aircraft and related parts imported from outside the United States; the outcome of current or future legal proceedings or regulatory actions; risks associated with stockholder activism; risks associated with cybersecurity and privacy, including potential disruptions to our information technology systems or information security breaches; heightened regulatory requirements concerning data security compliance; risks associated with reliance on, and potential failure of, automated systems to operate our business; our inability to attract and retain qualified crewmembers; our being subject to potential unionization, work stoppages, slowdowns or increased labor costs; reputational and business risk from an accident or incident involving our aircraft; risks associated with damage to our reputation and the JetBlue brand name; our significant amount of fixed obligations and the ability to service such obligations; possible failure to comply with financial and other debt covenants included in the agreements governing our debt; financial risks associated with credit card processors; risks associated with seeking short-term additional financing liquidity; failure to realize the full value of intangible or long-lived assets, causing us to record impairments; limits on our ability to use certain tax attributes; risks associated with our development and use of AI-powered solutions; risks associated with disease outbreaks or environmental disasters affecting travel behavior; compliance with environmental laws and regulations, which may cause us to incur substantial costs; the impacts of federal government shutdowns, federal budget constraints or federally imposed furloughs; increasing scrutiny of, and evolving expectations regarding, environmental matters; changes in government regulations in our industry; acts of war or terrorism; and changes in global economic or geopolitical conditions or an economic downturn leading to a continuing or accelerated decrease in demand for air travel. It is routine for our internal projections and expectations to change as the year or each quarter in the year progresses, and therefore it should be clearly understood that the internal projections, beliefs, and assumptions upon which we base our expectations may change prior to the end of each quarter or year.
Given the risks and uncertainties surrounding forward-looking statements, you should not place undue reliance on these statements. You should understand that many important factors, in addition to those discussed or incorporated by reference in this Report, could cause our results to differ materially from those expressed in the forward-looking statements. Further information concerning these and other factors is contained in JetBlue's filings with the U.S. Securities and Exchange Commission (the "SEC"), including but not limited to in our Annual Report on Form 10-K for the year ended December 31, 2025 (the "2025 Form 10-K"), as may be updated by our other SEC filings. In light of these risks and uncertainties, the forward-looking events discussed in this Report might not occur. Our forward-looking statements speak only as of the date of this Report. Other than as required by law, we undertake no obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise.
3
Table of Contents
Where You Can Find Other Information
Our website is www.jetblue.com. Information contained on our website is not part of this Report. Information we furnish or file with the SEC, including our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and any amendments to or exhibits included in these reports are available for download, free of charge, on our website soon after such reports are filed with or furnished to the SEC. Our SEC filings, including exhibits filed therewith, are also available at the SEC's website at www.sec.gov.
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Table of Contents
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
JETBLUE AIRWAYS CORPORATION
CONSOLIDATED BALANCE SHEETS
(in millions, except per share data)
| September 30, 2026 | December 31, 2025 | ||||||||||
| (unaudited) | |||||||||||
| ASSETS | |||||||||||
| CURRENT ASSETS | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
| Investment securities | |||||||||||
Receivables, less allowance (2026 - $ | |||||||||||
Spare parts, aircraft fuel and supplies, less allowance (2026 - $ | |||||||||||
| Restricted cash and cash equivalents | |||||||||||
| Prepaid expenses and other | |||||||||||
| Total current assets | |||||||||||
| PROPERTY AND EQUIPMENT | |||||||||||
| Flight equipment | |||||||||||
| Pre-delivery deposits for flight equipment | |||||||||||
| Total flight equipment and pre-delivery deposits, gross | |||||||||||
| Less accumulated depreciation | |||||||||||
| Total flight equipment and pre-delivery deposits, net | |||||||||||
| Other property and equipment, gross | |||||||||||
| Less accumulated depreciation | |||||||||||
| Total other property and equipment, net | |||||||||||
| Total property and equipment, net | |||||||||||
| OPERATING LEASE ASSETS | |||||||||||
| OTHER ASSETS | |||||||||||
| Investment securities | |||||||||||
| Restricted cash and cash equivalents | |||||||||||
Intangible assets, net of accumulated amortization (2026 - $ | |||||||||||
| Other | |||||||||||
| Total other assets | |||||||||||
| TOTAL ASSETS | $ | $ | |||||||||
See accompanying notes to condensed consolidated financial statements.
5
Table of Contents
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
JETBLUE AIRWAYS CORPORATION
CONSOLIDATED BALANCE SHEETS
(in millions, except per share data)
| September 30, 2026 | December 31, 2025 | ||||||||||
| (unaudited) | |||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
| CURRENT LIABILITIES | |||||||||||
| Accounts payable | $ | $ | |||||||||
| Air traffic liability | |||||||||||
| Accrued salaries, wages and benefits | |||||||||||
| Other accrued liabilities | |||||||||||
| Current operating lease liabilities | |||||||||||
| Current maturities of long-term debt and finance lease obligations | |||||||||||
| Total current liabilities | |||||||||||
| LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS | |||||||||||
| LONG-TERM OPERATING LEASE LIABILITIES | |||||||||||
| DEFERRED TAXES AND OTHER LIABILITIES | |||||||||||
| Deferred income taxes | |||||||||||
| Air traffic liability - non-current | |||||||||||
| Other liabilities | |||||||||||
| Total deferred taxes and other liabilities | |||||||||||
| COMMITMENTS AND CONTINGENCIES (Note 7) | |||||||||||
| STOCKHOLDERS' EQUITY | |||||||||||
Preferred stock, $ | |||||||||||
Common stock, $ | |||||||||||
Treasury stock, at cost; | ( | ( | |||||||||
| Additional paid-in capital | |||||||||||
| Retained (deficit) earnings | ( | ||||||||||
| Accumulated other comprehensive income (loss) | ( | ||||||||||
| Total stockholders' equity | |||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | $ | |||||||||
See accompanying notes to condensed consolidated financial statements.
6
Table of Contents
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
JETBLUE AIRWAYS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in millions, except per share data)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| OPERATING REVENUES | |||||||||||||||||||||||
| Passenger | $ | $ | $ | $ | |||||||||||||||||||
| Other | |||||||||||||||||||||||
| Total operating revenues | |||||||||||||||||||||||
| OPERATING EXPENSES | |||||||||||||||||||||||
| Aircraft fuel | |||||||||||||||||||||||
| Salaries, wages and benefits | |||||||||||||||||||||||
| Landing fees and other rents | |||||||||||||||||||||||
| Depreciation and amortization | |||||||||||||||||||||||
| Aircraft rent | |||||||||||||||||||||||
| Sales and marketing | |||||||||||||||||||||||
| Maintenance, materials and repairs | |||||||||||||||||||||||
| Special items | |||||||||||||||||||||||
| Other operating expenses | |||||||||||||||||||||||
| Total operating expenses | |||||||||||||||||||||||
| OPERATING LOSS | ( | ( | ( | ( | |||||||||||||||||||
| OTHER INCOME (EXPENSE) | |||||||||||||||||||||||
| Interest expense | ( | ( | ( | ( | |||||||||||||||||||
| Interest income | |||||||||||||||||||||||
| Capitalized interest | |||||||||||||||||||||||
| Gain on investments, net | |||||||||||||||||||||||
| Other | |||||||||||||||||||||||
| Total other expense | ( | ( | ( | ( | |||||||||||||||||||
| LOSS BEFORE INCOME TAXES | ( | ( | ( | ( | |||||||||||||||||||
| Income tax benefit | |||||||||||||||||||||||
| NET LOSS | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
| LOSS PER COMMON SHARE | |||||||||||||||||||||||
| Basic | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
| Diluted | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
See accompanying notes to condensed consolidated financial statements.
7
Table of Contents
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
JETBLUE AIRWAYS CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(unaudited, in millions)
| Three Months Ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| NET LOSS | $ | ( | $ | ( | |||||||
Changes in fair value of available-for-sale securities, net of reclassifications into earnings, net of taxes of $ | ( | ||||||||||
| Total other comprehensive loss | ( | ||||||||||
| COMPREHENSIVE LOSS | $ | ( | $ | ( | |||||||
| Nine Months Ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| NET LOSS | $ | ( | $ | ( | |||||||
Changes in fair value of available-for-sale securities, net of reclassifications into earnings, net of taxes of $ | |||||||||||
| Total other comprehensive income | |||||||||||
| COMPREHENSIVE LOSS | $ | ( | $ | ( | |||||||
See accompanying notes to condensed consolidated financial statements.
8
Table of Contents
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
JETBLUE AIRWAYS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in millions)
| Nine Months Ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
| Net loss | $ | ( | $ | ( | |||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
| Deferred income taxes | ( | ( | |||||||||
| Depreciation and amortization | |||||||||||
| Gain on flight equipment transactions, net | ( | ( | |||||||||
| Stock-based compensation | |||||||||||
| Changes in certain operating assets and liabilities | ( | ||||||||||
| Other, net | ( | ( | |||||||||
| Net cash used in operating activities | ( | ( | |||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
| Capital expenditures | ( | ( | |||||||||
| Pre-delivery deposits for flight equipment | ( | ( | |||||||||
| Purchase of held-to-maturity investments | ( | ||||||||||
| Proceeds from the sale and maturities of held-to-maturity investments | |||||||||||
| Purchase of available-for-sale securities | ( | ( | |||||||||
| Proceeds from the sale of available-for-sale securities | |||||||||||
| Proceeds from flight equipment transactions | |||||||||||
| Other, net | ( | ||||||||||
| Net cash (used in) provided by investing activities | ( | ||||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
| Proceeds from issuance of long-term debt, net of issuance costs | |||||||||||
| Proceeds from issuance of common stock | |||||||||||
| Repayment of long-term debt and finance lease obligations | ( | ( | |||||||||
| Acquisition of treasury stock | ( | ( | |||||||||
| Net cash used in financing activities | ( | ( | |||||||||
| (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS | ( | ||||||||||
| Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period | |||||||||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period (1) | $ | $ | |||||||||
SUPPLEMENTAL CASH FLOW INFORMATION | |||||||||||
Cash payments for interest, net | $ | ( | $ | ( | |||||||
Cash proceeds (payments) for income taxes, net | ( | ||||||||||
NON-CASH TRANSACTIONS | |||||||||||
| Operating lease assets acquired under operating leases | $ | $ | |||||||||
| Flight equipment acquired under finance leases | |||||||||||
(1) Refer to the table below for a reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents. | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
Restricted cash and cash equivalents (2) | |||||||||||
| Total cash, cash equivalents, restricted cash, and restricted cash equivalents | $ | $ | |||||||||
(2) Restricted cash and restricted cash equivalents primarily consists of principal and interest payments held as a reserve associated with the financing of the TrueBlue® program , funds held for workers compensation obligations and various letters of credit.
See accompanying notes to condensed consolidated financial statements.
9
Table of Contents
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
JETBLUE AIRWAYS CORPORATION
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(unaudited, in millions)
| Common Stock Issued Shares Amount | Treasury Stock Shares Amount | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Total | |||||||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2026 | $ | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
| Net loss | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||
| Stock compensation expense | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Balance at September 30, 2026 | $ | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
| Common Stock Issued Shares Amount | Treasury Stock Shares Amount | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2025 | $ | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
| Net loss | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
| Stock compensation expense | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Balance at September 30, 2025 | $ | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
| Common Stock Issued Shares Amount | Treasury Stock Shares Amount | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2025 | $ | $ | ( | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||
| Net loss | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Vesting of restricted stock units | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Stock compensation expense | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Stock issued under crewmember stock purchase plan | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
| Balance at September 30, 2026 | $ | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
| Common Stock Issued Shares Amount | Treasury Stock Shares Amount | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Total | |||||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2024 | $ | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
| Net loss | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||
| Vesting of restricted stock units | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Stock compensation expense | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Stock issued under crewmember stock purchase plan | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
| Balance at September 30, 2025 | $ | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
See accompanying notes to condensed consolidated financial statements.
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
JETBLUE AIRWAYS CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
Note 1 - Summary of Significant Accounting Policies
Basis of Presentation
JetBlue Airways Corporation ("JetBlue") provides air transportation services across the United States, Latin America, the Caribbean, Canada and Europe. Our condensed consolidated financial statements include the accounts of JetBlue and our subsidiaries which are collectively referred to as "we" or the "Company." All majority-owned subsidiaries are consolidated on a line-by-line basis, with all intercompany transactions and balances being eliminated. These condensed consolidated financial statements and related notes should be read in conjunction with our 2025 audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2025 (the "2025 Form 10-K").
These condensed consolidated financial statements are unaudited and have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (the "SEC"). In our opinion, they reflect all adjustments, including normal recurring items, that are necessary to present fairly the results for interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States ("GAAP") have been condensed or omitted as permitted by such rules and regulations; however, we believe that the disclosures included herein are adequate to make the information presented not misleading.
Unless otherwise noted, all amounts disclosed are stated before consideration of income taxes.
Note 2 - Revenue Recognition
The Company categorizes revenue recognized from contracts with its customers by revenue source as we believe it best depicts the nature, amount, timing, and uncertainty of our revenue and cash flow. The following table provides revenue recognized by revenue source for the three and nine months ended September 30, 2026 and 2025 (in millions):
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Passenger revenue | |||||||||||||||||||||||
| Passenger travel | $ | $ | $ | $ | |||||||||||||||||||
| Loyalty revenue - air transportation | |||||||||||||||||||||||
| Other revenue | |||||||||||||||||||||||
| Loyalty and related revenue | |||||||||||||||||||||||
| Other revenue | |||||||||||||||||||||||
| Total operating revenue | $ | $ | $ | $ | |||||||||||||||||||
TrueBlue® is our customer loyalty program designed to reward and recognize our customers. TrueBlue® points earned from ticket purchases are recorded as a reduction to Passenger travel within passenger revenue. Amounts presented in Loyalty revenue - air transportation represent revenue recognized when TrueBlue® points have been redeemed and travel has occurred. Loyalty and related revenue within other revenue primarily consists of the non-air transportation elements from the sale of TrueBlue® points as well as lounge access.
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
JETBLUE AIRWAYS CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
Contract Liabilities
Our contract liabilities primarily consist of ticket sales for which transportation has not yet been provided, unused credits available to customers, and outstanding loyalty points available for redemption (in millions):
| September 30, 2026 | December 31, 2025 | ||||||||||
Air traffic liability - passenger travel (1) | $ | $ | |||||||||
| Air traffic liability - loyalty program (air transportation) | |||||||||||
Deferred revenue - passenger travel and loyalty program travel (2) | |||||||||||
Deferred revenue - other (3) | |||||||||||
| Total | $ | $ | |||||||||
(1) The balances as of September 30, 2026 and December 31, 2025 include a $2
(2) Included within other accrued liabilities and other liabilities on our consolidated balance sheets.
(3) Included within air traffic liability on our consolidated balance sheets.
During the nine months ended September 30, 2026 and 2025, we recognized passenger revenue of $1.2 billion and $1.1 billion, respectively, which was included in passenger travel liability at the beginning of the respective periods.
The Company elected the practical expedient that allows entities to not disclose the amount of the remaining transaction price and its expected timing of recognition for passenger tickets if the contract has an original expected duration of one year or less or if certain other conditions are met. We elected to apply this practical expedient to our contract liabilities relating to passenger travel and ancillary services as our tickets or any related passenger credits expire generally one year from the date of booking.
TrueBlue® points are combined into one homogeneous pool and are not separately identifiable. As such, the revenue is comprised of points that were part of the air traffic liability balance at the beginning of the period as well as points that were issued during the period.
The table below presents the activity of the current and non-current air traffic liability for our loyalty program, and includes points earned and sold to participating companies for the nine months ended September 30, 2026 and 2025 (in millions):
| Balance at December 31, 2025 | $ | ||||
TrueBlue® points redeemed passenger | ( | ||||
TrueBlue® points redeemed other | ( | ||||
TrueBlue® points earned and sold | |||||
| Balance at September 30, 2026 | $ | ||||
| Balance at December 31, 2024 | $ | ||||
TrueBlue® points redeemed passenger | ( | ||||
TrueBlue® points redeemed other | ( | ||||
TrueBlue® points earned and sold | |||||
| Balance at September 30, 2025 | $ | ||||
The timing of our TrueBlue® point redemptions can vary; however, the majority of points are redeemed within approximately two years of the date of issuance.
Note 3 - Long-term Debt, Short-term Borrowings, and Finance Lease Obligations
During the nine months ended September 30, 2026, we made principal payments of $658 million on our outstanding debt and finance lease obligations.
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
JETBLUE AIRWAYS CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
At September 30, 2026, we had pledged aircraft, engines, other equipment, and facilities assets with a net book value of $8.0 billion as security under various financing arrangements. In addition, certain TrueBlue® program assets have been pledged as part of the financing of the TrueBlue® program.
At September 30, 2026, scheduled maturities of our long-term debt and finance lease obligations, net of debt issuance costs, for the next five years were as follows (in millions):
| Year | Total | ||||
| Remainder of 2026 | $ | ||||
| 2027 | |||||
| 2028 | |||||
| 2029 | |||||
| 2030 | |||||
| Thereafter | |||||
| Total | $ | ||||
Long-term debt and finance lease obligations at September 30, 2026 and December 31, 2025 consisted of the following (in millions):
September 30, 2026 | December 31, 2025 | |||||||||||||
| Secured Debt | ||||||||||||||
| Fixed rate special facility bonds, due through 2036 | $ | $ | ||||||||||||
| Fixed rate enhanced equipment notes: | ||||||||||||||
| 2019-1 Series AA, due through 2032 | ||||||||||||||
| 2019-1 Series A, due through 2028 | ||||||||||||||
| 2019-1 Series B, due through 2027 | ||||||||||||||
| 2020-1 Series A, due through 2032 | ||||||||||||||
| 2020-1 Series B, due through 2028 | ||||||||||||||
| Fixed rate equipment notes, due through 2036 | ||||||||||||||
Floating rate equipment notes, due through 2036 (1) | ||||||||||||||
Aircraft failed sale-leaseback transactions, due through 2036 (1) | ||||||||||||||
TrueBlue® senior secured notes, due through 2031 | ||||||||||||||
TrueBlue® senior secured term loan facility, due through 2029 (1) | ||||||||||||||
| Finance leases | ||||||||||||||
| Unsecured Debt | ||||||||||||||
| Unsecured CARES Act Payroll Support Program loan, due through 2030 | ||||||||||||||
| Unsecured Consolidated Appropriations Act Payroll Support Program Extension loan, due through 2031 | ||||||||||||||
| Unsecured American Rescue Plan Act of 2021 Payroll Support loan, due through 2031 | ||||||||||||||
| Total debt and finance lease obligations | $ | $ | ||||||||||||
| Less: Debt issuance costs | ( | ( | ||||||||||||
| Less: Current maturities | ( | ( | ||||||||||||
| Long-term debt and finance lease obligations | $ | $ | ||||||||||||
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
JETBLUE AIRWAYS CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
The carrying amounts and estimated fair values of our long-term debt and finance lease obligations, net of debt issuance costs, at September 30, 2026 and December 31, 2025 were as follows (in millions):
| September 30, 2026 | December 31, 2025 | ||||||||||||||||||||||
| Carrying Value | Estimated Fair Value (1) | Carrying Value | Estimated Fair Value (1) | ||||||||||||||||||||
| Total Debt | $ | $ | $ | $ | |||||||||||||||||||
(1) The estimated fair values of our publicly held long-term debt are classified as Level 2 in the fair value hierarchy. The fair values of our non-public debt are estimated using a discounted cash flow analysis based on our borrowing rates for instruments with similar terms and therefore classified as Level 3 in the fair value hierarchy. The fair values of our other financial instruments approximate their carrying values. Refer to Note 8 for an explanation of the fair value hierarchy structure.
We have financed certain aircraft with Enhanced Equipment Trust Certificates ("EETCs"). One of the benefits of this structure is being able to finance several aircraft at one time, rather than individually. The structure of EETC financing is that we create pass-through trusts in order to issue pass-through certificates. The proceeds from the issuance of these certificates are then used to purchase equipment notes which are issued by us and are secured by our aircraft. These trusts meet the definition of a variable interest entity ("VIE"), as defined in Topic 810, Consolidation of the Financial Accounting Standards Board ("FASB") Codification, and must be considered for consolidation in our financial statements. Our assessment of our EETCs considers both quantitative and qualitative factors including the purpose for which these trusts were established and the nature of the risks in each. The main purpose of the trust structure is to enhance the creditworthiness of our debt obligation through certain bankruptcy protection provisions and liquidity facilities, and also to lower our total borrowing cost. We concluded that we are not the primary beneficiary in these trusts because our involvement in them is limited to principal and interest payments on the related notes, the trusts were not set up to pass along variability created by credit risk to us, and the likelihood of our defaulting on the notes. Therefore, we have not consolidated these trusts in our financial statements.
On April 1, 2026, the Company paid in full its 0.50 % convertible senior notes due 2026, including $325 million of principal and $1 million of interest. A portion of this payment was funded using amounts previously held in escrow pursuant to the Company's revolving credit facility agreement with Citibank. Following this repayment, the Company has no remaining obligations under these notes.
Fixed Rate Equipment Notes
On April 14, 2026, the Company entered into an agreement providing for up to $500 million in debt financing, secured by certain owned A321, A320, and A220 aircraft. As of September 30, 2026, the Company had borrowed an aggregate of $500 million under the agreement. The borrowings have maturities ranging from 2033 through 2036 and interest rates based on U.S. Treasury rates plus an applicable margin. In addition, the agreement provides for $250 million in incremental aircraft-secured financing beyond the initial $500 million commitment. During the third quarter of 2026, the Company satisfied the applicable requirements to access this additional financing, including delivery of the required advance notice. Funding is expected in the fourth quarter of 2026, subject to the completion of customary funding mechanics.
Short-term Borrowings
Citibank Line of Credit
We have a revolving credit facility with Citibank for $600 million. This facility bears interest at a rate equal to the Alternate Base Rate ("ABR") plus a margin or SOFR plus a margin. The facility has a maturity of October 21, 2029.
On October 27, 2025, we entered into an agreement with Citibank, N.A. to hold funds required to meet the specified minimum outstanding principal amount in escrow in order to maintain the facility expiration date of October 21, 2029. The escrow account was funded with the required amount of $100 million prior to December 31, 2025, satisfying the requirements under the amended facility.
On April 1, 2026, the amounts held in escrow were used to pay a portion of the 0.50 % convertible senior notes due 2026.
As of and for the periods ended September 30, 2026 and December 31, 2025, we did not
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
JETBLUE AIRWAYS CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
Morgan Stanley Line of Credit
Note 4 - Loss Per Share
Basic income (loss) per share is calculated by dividing net income (loss) by the weighted average number of shares outstanding. Diluted income per share is calculated similarly but includes potential dilution from restricted stock units, the crewmember stock purchase plan, convertible notes, warrants issued under various federal payroll support programs, and any other potentially dilutive instruments using the treasury stock and if-converted method.
Anti-dilutive common stock equivalents excluded from the computation of diluted loss per share amounts were 8.1 million and 5.6 million for the three months ended September 30, 2026 and September 30, 2025, respectively. Anti-dilutive common stock equivalents excluded from the computation of diluted loss per share amounts were 7.6
The following table shows how we computed basic and diluted loss per common share for the three and nine months ended September 30, 2026 and 2025 (dollars and share data in millions):
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
| Weighted average basic shares | |||||||||||||||||||||||
| Effect of dilutive securities | |||||||||||||||||||||||
| Weighted average diluted shares | |||||||||||||||||||||||
| Loss per common share | |||||||||||||||||||||||
| Basic | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
| Diluted | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Note 5 - Income Taxes
We account for income taxes utilizing the liability method. Deferred income taxes are recognized for the tax consequences of temporary differences between the tax and financial statement reporting bases of assets and liabilities. A valuation allowance for deferred tax assets is provided unless realization of the asset is judged by us to be more likely than not. Our policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense.
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
JETBLUE AIRWAYS CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
Note 6 - Crewmember Retirement Plan
We sponsor a retirement savings 401(k) defined contribution plan, covering our U.S. and Puerto Rico crewmembers, where we match 100 % of our eligible crewmember's contributions up to 5 % of their eligible wages. Employer contributions vest after three years of service and are measured from a crewmember's hire date. Crewmembers are vested immediately in their voluntary contributions.
Certain Federal Aviation Administration ("FAA") licensed crewmembers receive a discretionary contribution of 8 % of eligible compensation, which we refer to as Retirement Non-elective Licensed Crewmember Contribution. System controllers also receive a Company discretionary contribution of 5 % of eligible compensation, referred to as Retirement Non-elective Crewmember Contribution. The Company's non-elective contributions vest after three years of service.
Our Pilots receive a non-elective Company contribution of 17 % of eligible compensation, referred to as Pilot Non-elective Contribution, per the terms of the finalized collective bargaining agreement between JetBlue and the Air Line Pilots Association ("ALPA"), in lieu of the above 401(k) Company matching contribution and non-elective contributions. The Company's Pilot Non-elective contributions vest after three years of service.
Total 401(k) company match and non-elective crewmember contribution expense for the three months ended September 30, 2026 and 2025 was $81 million and $75 million, respectively, and for the nine months ended September 30, 2026 and 2025 was $232 million and $224 million, respectively.
Note 7 - Commitments and Contingencies
Flight Equipment Commitments
As of September 30, 2026, our committed expenditures for aircraft and related flight equipment, including estimated amounts for contractual price escalations and pre-delivery deposits, are set forth in the table below (in millions):
| Flight Equipment Commitments | |||||
| Year | Total | ||||
| Remainder of 2026 | $ | ||||
| 2027 | |||||
| 2028 | |||||
| 2029 | |||||
| 2030 | |||||
| Thereafter | |||||
| Total | $ | ||||
Our committed aircraft deliveries as of September 30, 2026 include the following aircraft:
Flight Equipment Deliveries (1) | |||||||||||||||||
| Year | Airbus A220 | Airbus A321neo | Total | ||||||||||||||
| Remainder of 2026 | |||||||||||||||||
| 2027 | |||||||||||||||||
| 2028 | |||||||||||||||||
| 2029 | |||||||||||||||||
| 2030 | |||||||||||||||||
| Thereafter | |||||||||||||||||
Total (2) | |||||||||||||||||
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
JETBLUE AIRWAYS CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
(1) The timing of aircraft deliveries and related committed expenditures presented in the table above is based on contractual delivery schedules, adjusted for delivery delays based on management's current expectations as of the date of this filing. These expectations reflect recent communications from Airbus regarding delivery delays resulting from global supply chain disruptions. Actual delivery timing may differ from the periods presented and remains subject to change due to manufacturer production schedules, supply chain constraints, contractual modifications, regulatory matters and other factors.
(2) In addition, we have options to purchase 20 A220-300 aircraft in 2028 through 2030.
Embraer E190 Fleet Transition
In 2025, as part of the Company's fleet transition plan, we retired our remaining Embraer E190 aircraft and entered into definitive agreements to sell the remaining E190 fleet. During the nine months ended September 30, 2026, we completed the sale of our remaining owned Embraer E190 airframes and engines and continued to sell related spare parts, and recorded a net gain of $28 million, which is included in other operating expenses in our consolidated statements of operations. We also returned our remaining leased E190 aircraft.
Held for Sale
As of September 30, 2026 and December 31, 2025, we had $165 million and $138 million, respectively, classified as held for sale within prepaid expenses and other in current assets on the consolidated balance sheets. The amounts included in held for sale are primarily related to two Airbus A321 neo XLR variant aircraft, two IAE V2500 engines, as well as Embraer E190 spare parts expected to be sold within one year.
Other Commitments and Contingencies
We utilize several credit card processors to process our ticket sales. Our agreements with these processors do not contain covenants, but do generally allow the processor to withhold cash reserves to protect the processor from potential liability for tickets purchased, but not yet used for travel. While we currently do not have any collateral requirements related to our credit card processors, we may be required to issue collateral to our credit card processors, or other key business partners, in the future.
As of September 30, 2026, we had $264 million in restricted cash and cash equivalents. We held $74 million of restricted cash equivalents as a reserve for principal and interest payments associated with the financing of the TrueBlue® program. We also had $58 million for letters of credit relating to a certain number of our leases, which will expire at the end of the related lease terms as well as a $65 million letter of credit relating to our 5 % ownership in JFK Millennium Partners ("JMP"), a private entity that is financing, developing, and operating JFK Terminal 6. The letters of credit are included in restricted cash and cash equivalents on the consolidated balance sheets. Additionally, we had $67 million cash pledged primarily related to funds held for workers compensation obligations and other business partner agreements, which will expire according to the terms of the related agreements.
Labor Unions and Non-Unionized Crewmembers
As of September 30, 2026, 49 % of our active full-time equivalent crewmembers were represented by labor unions. The pilot and inflight crewmember groups, which represents 21 % and 28 % of our active full-time equivalent crewmembers, respectively, are covered by a collective bargaining agreement ("CBA").
Our pilots are represented by ALPA. Our inflight crewmembers, flight instructors, and dispatchers, which include air traffic controllers and system controllers, are represented by the Transport Workers Union of America ("TWU"); our other frontline crewmembers do not have third party representation.
TWU
On July 14, 2022, TWU filed a representation application with the National Mediation Board ("NMB") seeking an election among the 35 pilot instructors ("Flight Instructors"). JetBlue disputed TWU's application alleging that Flight Instructors do not constitute a craft or class. On October 26, 2023, the NMB notified the participants that it rejected JetBlue's argument and ordered an election. The Flight Instructors voted for TWU representation. Contract negotiations for an initial CBA began in April 2024 and are ongoing.
JetBlue's inflight crewmembers are represented by TWU, with a contract amendable date of December 13, 2026. The option for TWU to initiate negotiations began on January 1, 2025 and is ongoing until the contract amendable date.
In November 2025, TWU filed a petition with the NMB seeking to represent the Company's dispatchers, air traffic
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
JETBLUE AIRWAYS CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
controllers, and system controllers. The NMB authorized an election which ran from January 15, 2026 through February 26, 2026. The dispatchers, air traffic controllers, and system controllers voted for TWU representation. Contract negotiations for an initial contract will begin in December 2026.
IAM
In November 2025, the International Association of Machinists & Aerospace Workers ("IAM") filed a petition with the NMB seeking to represent the Company's ground operations class of employees. The NMB reviewed IAM's submission and determined IAM failed to show it had the required amount of authorization cards to hold an election.
ALPA
In January 2023, JetBlue pilots ratified a two-year contract extension effective March 1, 2023. In February 2025, the contract became amendable. Contract negotiations formally began in May 2024 and are ongoing.
Non-Unionized Crewmembers
We enter into individual employment agreements with each of our non-unionized FAA-licensed crewmembers, which include technicians and inspectors. Each employment agreement is for a term of five years and automatically renews for an additional five years unless either the crewmember or we elect not to renew it by giving at least 90 days' notice before the end of the relevant term. Pursuant to these agreements, these crewmembers can only be terminated for cause. In the event of a downturn in our business that would require a reduction in work hours, we are obligated to pay these crewmembers a guaranteed level of income and to continue their benefits if they do not obtain other aviation employment.
Legal Matters
Occasionally, we are involved in various claims, lawsuits, regulatory examinations, investigations, and other legal matters involving suppliers, crewmembers, customers, and governmental agencies, arising, for the most part, in the ordinary course of business. The outcome of litigation and other legal matters is always uncertain. The Company believes it has valid defenses to the legal matters currently pending against it, is defending itself vigorously, and has recorded accruals determined in accordance with GAAP, where appropriate. In making a determination regarding accruals, using available information, we evaluate the likelihood of an unfavorable outcome in legal or regulatory proceedings to which we are a party and record a loss contingency when it is probable a liability has been incurred and the amount of the loss can be reasonably estimated. These subjective determinations are based on the status of such legal or regulatory proceedings, the merits of our defenses, and consultation with legal counsel. Actual outcomes of these legal and regulatory proceedings may materially differ from our current estimates. It is possible that resolution of one or more of the legal matters currently pending or threatened could result in losses material to our condensed consolidated results of operations, liquidity, or financial condition.
To date, none of these types of litigation matters, most of which are typically covered by insurance, has had a material impact on our operations or financial condition. We have insured and continue to insure against most of these types of claims. A judgment on any claim not covered by, or in excess of, our insurance coverage could materially adversely affect our condensed consolidated results of operations, liquidity, or financial condition.
In July 2020, JetBlue and American Airlines Group, Inc. ("American") entered into the Northeast Alliance ("NEA"), which was permanently enjoined effective August 18, 2023 following an antitrust challenge by the U.S. Department of Justice and the Attorney General of six states and the District of Columbia. The wind down of the NEA is substantially complete. The matters described below arise out of, or relate to, the NEA. Both of the matters below remain subject to uncertainties inherent in litigation.
In December 2022 and February 2023, four putative class actions lawsuits were filed in the United States District Court for the Eastern District of New York ("EDNY") and the United States District Court for the District of Massachusetts, alleging that JetBlue and American violated U.S. antitrust law in connection with the NEA. These cases were consolidated in the EDNY. Among other things, plaintiffs seek injunctive relief and monetary damages on behalf of a claimed putative class of direct purchasers of airline tickets from JetBlue and American and, in certain cases, other airlines on flights to or from NEA airports from July 16, 2020 through the period the NEA was in effect and also to the alleged anticompetitive effects of the defendants' conduct ceases. Fact discovery is complete, and in early July 2026, the plaintiffs filed a petition with the EDNY to certify the putative class they allege was damaged. On October 9, 2026, the Company and American filed a brief opposing that class certification, as well as a motion seeking to disqualify the plaintiffs' expert. The Company continues to defend the matter vigorously, and continues to believe these lawsuits are without merit. As of September 30, 2026, the potential outcomes of these claims cannot be determined and an estimate of the reasonably possible loss or range of loss, if any, cannot be made.
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
JETBLUE AIRWAYS CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
On April 28, 2025, American filed a lawsuit against the Company in the Business Court of Tarrant County, Texas, alleging breach of contract under a revenue-sharing agreement related to the NEA and seeking monetary damages that American claims are owed for operations between April 1, 2022 to July 18, 2023. The Company disputes the allegations, believes it has strong defenses to the claims alleged and intends to defend the matter vigorously. The Company has recorded an accrual for this matter based on its current assessment of the probable and reasonably estimable loss.
Note 8 - Fair Value
Under Topic 820, Fair Value Measurement of the FASB Codification, disclosures are required about how fair value is determined for assets and liabilities and a hierarchy for which these assets and liabilities must be grouped is established, based on significant levels of inputs as follows:
Level 1 - observable inputs such as unadjusted quoted prices in active markets for identical assets or liabilities;
Level 2 - quoted prices in active markets for similar assets and liabilities, and other inputs that are observable directly or indirectly for the asset or liability; or
Level 3 - unobservable inputs for the asset or liability, such as discounted cash flow models or valuations.
The determination of where assets and liabilities fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement.
The following is a listing of our assets required to be measured at fair value on a recurring basis and where they are classified within the fair value hierarchy as of September 30, 2026 and December 31, 2025 (in millions):
| September 30, 2026 | |||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| Assets | |||||||||||||||||||||||
| Cash equivalents | $ | $ | $ | $ | |||||||||||||||||||
| Restricted cash equivalents | |||||||||||||||||||||||
| Available-for-sale investment securities | |||||||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| Assets | |||||||||||||||||||||||
| Cash equivalents | $ | $ | $ | $ | |||||||||||||||||||
| Restricted cash equivalents | |||||||||||||||||||||||
| Available-for-sale investment securities | |||||||||||||||||||||||
Refer to Note 3 for fair value information related to our outstanding debt obligations as of September 30, 2026 and December 31, 2025.
Cash Equivalents and Restricted Cash Equivalents
Our cash equivalents include money market securities and commercial paper that are readily convertible into cash, have maturities of three months or less when purchased, and are considered to be highly liquid and easily tradable. The money market securities are valued using inputs observable in active markets for identical securities and are therefore classified as Level 1 within our fair value hierarchy. The fair value of commercial paper is based on observable inputs in non-active markets, which is therefore classified as Level 2 in the hierarchy. Restricted cash equivalents are composed of money market securities held as a reserve for principal and interest payments associated with the financing of the TrueBlue® program.
Available-for-Sale Investment Securities
Our available-for-sale investment securities include investments such as commercial paper and convertible debt securities. The fair value of commercial paper is based on observable inputs in non-active markets, which is therefore classified as Level 2 in the hierarchy. The fair value of convertible debt securities is based on unobservable inputs and is classified as Level 3 in the hierarchy.
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
JETBLUE AIRWAYS CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
Held-to-Maturity Investment Securities
Our held-to-maturity investment securities consist of corporate bonds, which are stated at amortized cost. If the corporate bonds were measured at fair value, they would be classified as Level 2 in the fair value hierarchy, based on quoted prices in active markets for similar securities.
The carrying value and estimated fair value of our held-to-maturity investment securities were as follows (in millions):
| September 30, 2026 | December 31, 2025 | ||||||||||||||||
| Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||
| Held-to-maturity investment securities | $ | $ | $ | $ | |||||||||||||
Note 9 - Investments
Investments in Debt Securities
The aggregate carrying values of our short-term and long-term debt investment securities consisted of the following at September 30, 2026 and December 31, 2025 (in millions):
| September 30, 2026 | December 31, 2025 | ||||||||||
| Available-for-sale investment securities | |||||||||||
| Commercial paper | $ | $ | |||||||||
| Debt securities | |||||||||||
| Total available-for-sale investment securities | |||||||||||
| Held-to-maturity investment securities | |||||||||||
| Corporate bonds | |||||||||||
| Total held-to-maturity investment securities | |||||||||||
| Total investment in debt securities | $ | $ | |||||||||
We use the specific identification method to determine the cost of our available-for-sale securities. Refer to Note 8 for an explanation of the fair value hierarchy structure.
We recorded a gain of $1 7 million and $12 million on our available-for-sale securities in gain on investments, net on our consolidated statements of operations. We recorded a loss of $1 no
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
JETBLUE AIRWAYS CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
Equity Investments
The aggregate carrying values of our equity investments are recorded in other assets on the consolidated balance sheets and consist of the following at September 30, 2026 and December 31, 2025 (in millions):
| September 30, 2026 | December 31, 2025 | ||||||||||
Equity method investments (1) | $ | $ | |||||||||
JetBlue Ventures equity investments (2) | |||||||||||
TWA Flight Center (3) | |||||||||||
| Total equity investments | $ | $ | |||||||||
(1) We have the ability to exercise significant influence over these investments and therefore they are accounted for using the equity method in accordance with Topic 323, Investments - Equity Method and Joint Ventures of the FASB Codification. Our share of our equity method investees' financial results is included in other income on our consolidated statements of operations.
(2) Our wholly owned subsidiary JetBlue Technology Ventures, LLC ("JBV") has equity investments in emerging companies which do not have readily determinable fair values. In accordance with Topic 321, Investments - Equity Securities of the FASB Codification, we account for these investments using a measurement alternative which allows entities to measure these investments at cost, less any impairment, adjusted for changes from observable price changes in orderly transactions for identifiable or similar investments of the same issuer. Refer to the table below for investment gain (loss) activity during the three and nine months ended September 30, 2026 and 2025.
(3) We have an approximately 9 % ownership interest in the TWA Flight Center Hotel at JFK, which is accounted for under the measurement alternative described above. We did not
The realized and unrealized gain (loss) on equity investments for the three and nine months ended September 30, 2026 and 2025 are as follows (in millions):
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| JBV Equity Investments | |||||||||||||||||||||||
| Realized gain (loss) recognized in gain on investments, net | $ | $ | ( | $ | $ | ( | |||||||||||||||||
| Unrealized gain recognized in gain on investments, net | |||||||||||||||||||||||
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
JETBLUE AIRWAYS CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
Note 10 - Accumulated Other Comprehensive Income (Loss)
Comprehensive income (loss) includes changes in fair value of our unrealized gain (loss) on available-for-sale securities. A rollforward of the amounts included in accumulated other comprehensive income (loss), net of taxes for the three months ended September 30, 2026 and 2025 is as follows (in millions):
| Available-for-sale securities | |||||
| Balance of accumulated income, at June 30, 2026 | $ | ||||
Reclassifications into earnings, net of taxes of $ | ( | ||||
Change in fair value, net of taxes of $ | |||||
| Balance of accumulated income, at September 30, 2026 | $ | ||||
| Balance of accumulated income, at June 30, 2025 | $ | ||||
Reclassifications into earnings, net of taxes of $( | ( | ||||
Change in fair value, net of taxes of $ | |||||
| Balance of accumulated income, at September 30, 2025 | $ | ||||
A rollforward of the amounts included in accumulated other comprehensive income (loss), net of taxes for the nine months ended September 30, 2026 and 2025 is as follows (in millions):
| Available-for-sale securities | |||||
| Balance of accumulated loss, at December 31, 2025 | $ | ( | |||
Reclassifications into earnings, net of taxes of $ | |||||
Change in fair value, net of taxes of $ | |||||
| Balance of accumulated income, at September 30, 2026 | $ | ||||
| Balance of accumulated income, at December 31, 2024 | $ | ||||
Reclassifications into earnings, net of taxes of $( | ( | ||||
Change in fair value, net of taxes of $ | |||||
| Balance of accumulated income, at September 30, 2025 | $ | ||||
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
JETBLUE AIRWAYS CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
Note 11 - Special Items
The following is a listing of special items presented on our consolidated statements of operations for the three and nine months ended September 30, 2026 and 2025 (in millions):
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||
| Special items | ||||||||||||||||||||
Litigation reserve adjustment (1) | $ | $ | $ | $ | ||||||||||||||||
Severance expenses (2) | ||||||||||||||||||||
| Other special items | ||||||||||||||||||||
| Total special items | $ | $ | $ | $ | ||||||||||||||||
(1) For the three and nine months ended September 30, 2026, expense relates to the remeasurement of a litigation reserve based upon an updated estimate of probable loss.
(2) For the three months ended September 30, 2025, expenses relate to severance and benefits costs associated with restructuring of certain workgroups. Expenses for the nine months ended September 30, 2025 also include benefit costs associated with the Company's pilot early retirement program.
Note 12 - Operating Segments and Geographic Information
Operating Segments
JetBlue has one
JetBlue's chief operating decision maker ("CODM") is our executive leadership team, which includes our Chief Executive Officer, President, Chief Financial Officer, and Chief Operating Officer. The CODM assesses performance for the air transportation segment which includes our loyalty program, and decides how to allocate resources based on net income (loss), which is reported on the consolidated statements of operations. The measure of segment assets is reported on the consolidated balance sheets as total assets.
Our tangible assets primarily consist of our fleet of aircraft. The CODM reviews flight profitability data, which incorporates aircraft type and route economics in making resource allocation decisions. Our fleet is deployed systemwide and substantially all of our aircraft may be deployed across any of our geographic regions, without giving weight on geographic results and therefore, our assets do not require an allocation by geographic region.
Geographic Region Information
Operating revenues are allocated to geographic regions, as defined by the Department of Transportation ("DOT"), based upon the origination and destination of each flight segment. As of September 30, 2026, we served 29 locations in the Caribbean and Latin American region, or Latin America as defined by the DOT. We also served nine destinations in Europe, or Atlantic as defined by the DOT. We include the three destinations in Puerto Rico and two destinations in the U.S. Virgin Islands in our Caribbean and Latin America allocation of revenues. We have reflected these locations within the Caribbean and Latin America region in the table below. Operating revenues by geographic regions for the three and nine months ended September 30, 2026 and 2025 are summarized below (in millions):
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Domestic & Canada | $ | $ | $ | $ | ||||||||||||||||||||||
| Caribbean & Latin America | ||||||||||||||||||||||||||
| Atlantic | ||||||||||||||||||||||||||
| Total operating revenue | $ | $ | $ | $ | ||||||||||||||||||||||
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PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Part I, Item 2 of this Report should be read together with our condensed consolidated financial statements and related notes included elsewhere in this Report and our audited consolidated financial statements and related notes included in our 2025 Form 10-K. This discussion contains forward-looking statements based upon current plans, expectations and beliefs involving risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth in Part I, Item 1A "Risk Factors" of our 2025 Form 10-K and in Part II, Item 1A "Risk Factors" and other parts of this Report.
We expect our operating results to fluctuate significantly from quarter-to-quarter in the future due to factors such as economic and geopolitical conditions, weather events, cost of aircraft fuel, and various other factors, many of which are outside of our control. Consequently, we believe quarter-over-quarter comparisons of our operating results may not necessarily be meaningful; you should not rely on our results for any one quarter as an indication of our future performance. Except for uncertainty related to the cost of aircraft fuel, we expect our expenses to continue to increase from wage rate cost pressures, as we acquire additional aircraft, and as our fleet ages.
OVERVIEW
Third Quarter 2026 Results
In the third quarter of 2026, we had an operating loss of $144 million and an operating margin of (5.1)%, compared to an operating loss of $100 million and operating margin of (4.3)% in the 2025 period. The increase in operating loss was primarily driven by significantly higher fuel prices, with average fuel price per gallon for the quarter increasing 57.4% year-over-year. Operating results were also impacted by disruptions resulting from severe weather and air traffic control constraints across our core Northeast markets, which reduced completed capacity and increased crew and other operating costs. These pressures were partially offset by higher revenue driven by resilient demand and higher fares. Despite significantly higher fuel prices and operational disruptions, adjusted operating margin (1), a non-GAAP financial measure that excludes special items, improved to (3.9)% in the third quarter of 2026 from (4.1)% in the third quarter of 2025.
As we progressed through the third quarter of 2026, demand remained resilient across our network despite higher fares, with strength across the booking curve, including peak and off-peak periods. Revenue growth was primarily driven by higher yields, supported in part by improvements in our revenue management technology, while customer volumes remained relatively resilient.
Our third quarter 2026 highlights include the following:
•Third quarter 2026 system available seat miles ("ASMs" or "capacity") increased by 2.3% year-over-year.
•Operating revenue for the third quarter of 2026 was $2.8 billion, a 21.1% increase year-over-year.
•Operating expense for the third quarter of 2026 was $3.0 billion, a 22.1% increase year-over-year.
•Operating expense, excluding special items (1) for the third quarter of 2026 was $2.9 billion, a 20.9% increase year-over-year.
•Operating expense per available seat mile ("CASM") for the third quarter of 2026 increased by 19.4% year-over-year to 17.12 cents compared to the third quarter of 2025.
•Excluding fuel, special items, and operating expenses related to our non-airline businesses, our cost per available seat mile ("CASM ex-fuel") (1) increased by 7.0% to 11.78 cents in the third quarter of 2026 compared to the third quarter of 2025.
Recent Developments
JetForward
JetForward, our strategic framework, is focused on four priority moves: delivering reliable and caring service, building the best East Coast leisure network, offering products and perks customers value, and providing a secure financial future. Our JetForward plan, which is designed to support our long-term profitability goals, reflects various assumptions regarding factors that may impact our operational and financial performance. For further information on potential factors that could affect the success of our strategic initiatives, including JetForward, see Part I, Item 1A "Risk Factors" within our 2025 Form 10-K.
(1) Refer to "Regulation G Reconciliation of Non-GAAP Financial Measures" at the end of this section for more information on this non-GAAP measure.
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PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The sections below highlight some actions made to support these priority moves during the quarter.
Reliable and Caring Service
We remain focused on delivering safe, reliable, and caring service for our customers. During the third quarter of 2026, our operations were impacted by a challenging summer operating environment, including severe weather and air traffic control constraints across our core Northeast markets, which reduced completed capacity and increased crew and other operating costs. Throughout these challenges, our crewmembers remained focused on caring for our customers and recovering our operations. We continue to work with the FAA to support longer-term improvements to the air traffic control system aimed at reducing delays.
Best East Coast Leisure Network
We are focused on high-performing leisure, visiting-friends-and-relatives and transcontinental routes in core geographies like New York, New England, Florida, and Puerto Rico.
During the third quarter, we continued executing our strategy to build the best East Coast leisure network. As part of these efforts, we continued expanding our presence in Fort Lauderdale, where customer demand remained strong despite significant capacity growth, with third-quarter revenue per available seat mile ("RASM") increasing nearly 15% year-over-year on more than 65% capacity growth. We continued adding destinations and frequencies to expand travel options and connecting opportunities, with peak daily departures expected to exceed 150 in the fourth quarter of 2026. This performance reinforces our strategy of concentrating growth in markets where we see opportunities to build scale and generate attractive returns.
Additionally, during the third quarter, we were selected as the successful bidder to acquire 22 operating authorizations (slots) previously operated by Spirit Airlines at New York's LaGuardia Airport. Following receipt of regulatory approval, the Company completed the acquisition in October 2026.
Products and Perks Customers Value
During the third quarter of 2026, we continued to enhance our products and services through the expansion of our premium offerings, loyalty program, and strategic partnerships. We also completed the transition to a new revenue management system designed to improve forecasting and optimize revenue across our network, including Mint® and connecting itineraries.
We continued advancing our Blue Sky collaboration with United Airlines, providing customers with expanded travel options and reciprocal loyalty benefits. Since the partnership launched, TrueBlue® members have redeemed more than 1.1 billion points on United flights. Paisly also continued expanding its travel platform offerings, including car rentals through MileagePlus Travel. Hotels and travel insurance are expected to launch before the end of 2026, followed by flight-and-hotel packages and cruises in the first half of 2027.
Our loyalty program continued to build momentum during the third quarter, with loyalty revenue increasing approximately 20% year-over-year. Following the refresh of our Premier Card, acquisitions increased more than eightfold year-over-year, while spending across our co-brand portfolio grew double digits. We also continued enhancing our premium customer experience through investments such as the opening of our BlueHouse™ lounge in Boston, creating additional opportunities to deepen customer engagement.
Additionally, BlueFirst™, our new domestic first-class product and largest JetForward initiative, is now available for sale across more than 30 routes, with service expected to begin in December 2026 between Boston and Fort Lauderdale before expanding to additional routes. The majority of aircraft retrofits are expected to be completed by the end of 2027, with the earnings contribution from the product expected to continue building through 2028 and beyond.
A Secure Financial Future
To secure our financial future, we remain focused on preserving liquidity, maintaining cost discipline, and proactively managing our balance sheet.
During the third quarter, elevated fuel prices and operational disruptions presented additional cost pressures. Geopolitical developments, including continued conflict in the Middle East, contributed to volatility in global energy markets and higher aircraft fuel prices, adversely affecting our operating results. Fuel prices remain subject to significant volatility based on geopolitical developments, global supply and demand, refining capacity, and other factors outside of our control.
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PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Against this backdrop, and amid continued macroeconomic uncertainty, we remained focused on managing the factors within our control, including disciplined capacity deployment, commercial initiatives, and cost management. Our JetForward cost initiatives continue to focus on improving operational efficiency and productivity through business partner spend management, improved crew utilization, and technology modernization.
Additionally, during the third quarter of 2026, the Company satisfied the applicable requirements to access the additional $250 million in financing under its existing aircraft-secured financing agreement, including delivery of the required advance notice. The financing is expected to fund in the fourth quarter of 2026, subject to the completion of customary funding mechanics. We continue to take a disciplined and proactive approach to managing our balance sheet, with a focus on maintaining liquidity and financial flexibility.
We remain on track to achieve our 2026 JetForward targets and continue to focus on returning to sustained operating profitability in 2027. We also remain focused on disciplined capital investment, with annual capital expenditures expected to remain below $1 billion through the end of the decade. These priorities are intended to support improved profitability, positive free cash flow, and balance sheet strengthening over time.
Liquidity
At September 30, 2026, we had $2.2 billion in liquidity, which includes $1.6 billion in unrestricted cash, cash equivalents, and investment securities and our $600 million undrawn Citibank line of credit.
Pratt & Whitney
In July 2023, Pratt & Whitney, a division of RTX Corporation, announced the requirement, mandated by the FAA, for removal of certain engines for inspection due to a rare condition involving powdered metal used in the production of certain engine parts on the PW1100G and PW1500G engine types. These engines power our Airbus A321neo and Airbus A220 fleets. The powdered metal affects engines manufactured between October 2015 and September 2021. Those engines are now required to be inspected after they have reached a reduced number of cycles dependent on the fleet type. As a result of these required inspections and other engine durability deficiencies, as of September 30, 2026, we had two aircraft grounded due to lack of engine availability. The Company currently expects each removed engine to take approximately 170 days for the PW1500G engines and approximately 270 days for the PW1100G engines to complete a shop visit and return to a serviceable condition. We believe we are past the peak number of groundings and expect the number of aircraft on the ground due to lack of engine availability to remain in the single digits for the remainder of 2026.
On July 27, 2026, we entered into supplemental support and other agreements with International Aero Engines, LLC ("IAE"), an affiliate of RTX Corporation, Pratt & Whitney Division, related to certain PW1100G and PW1500G engine operational disruptions, technical issues occurring through December 31, 2025 and other matters. Under the agreements, we received consideration including credits up to $105 million that may be applied toward future purchases of qualifying goods and services from IAE, IAE International Aero Engines AG and Pratt & Whitney through December 31, 2027, including in exchange for waiving certain claims.
These credits are accounted for as vendor consideration under ASC 705-20 and are allocated to qualifying purchases through December 31, 2027 based on our estimated eligible spend for applicable goods and services during that period. Credits associated with operating expenditures are recognized as reductions of the related operating expenses, while credits associated with capital expenditures are recognized as reductions of the cost basis of the related assets.
Embraer E190 Fleet Transition
In 2025, as part of the Company's fleet transition plan, we retired our remaining Embraer E190 aircraft and entered into definitive agreements to sell the remaining E190 fleet. During the nine months ended September 30, 2026, we completed the sale of our remaining owned Embraer E190 airframes and engines and continued to sell related spare parts, and recorded a net gain of $28 million, which is included in other operating expenses in our consolidated statements of operations. We also returned our remaining leased E190 aircraft.
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PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Three Months Ended September 30, 2026 vs. 2025
Overview
We reported a net loss of $257 million, operating loss of $144 million and an operating margin of (5.1)% for the three months ended September 30, 2026. This compares to a net loss of $143 million, an operating loss of $100 million and an operating margin of (4.3)% for the three months ended September 30, 2025. Our loss per share was $0.68 for the third quarter of 2026 compared to a loss per share of $0.39 for the same period in 2025. Net loss increased $114 million year-over-year primarily due to elevated fuel prices as well as higher salaries, wages and benefits, largely attributable to operational disruptions, as well as a lower current year income tax benefit. The increases in expense were partially offset by higher revenue driven by stronger demand and higher fares.
Our reported results for the three months ended September 30, 2026 and 2025 included the effects of special items and certain gains on investments. Adjusting for these items, our adjusted net loss (1) was $226 million, adjusted operating loss (1) was $111 million, adjusted operating margin (1) was (3.9)%, and adjusted loss per share (1) was $0.60 for the three months ended September 30, 2026. This compares to an adjusted net loss (1) of $144 million, adjusted operating loss (1) of $95 million, adjusted operating margin (1) of (4.1)%, and adjusted loss per share (1) of $0.40 for the three months ended September 30, 2025.
Operating Revenues
| (Revenues in millions; percent changes based on unrounded numbers) | Three Months Ended September 30, | Year-over-Year Change | ||||||||||||||||||||||||
| 2026 | 2025 | $ | % | |||||||||||||||||||||||
| Passenger revenue | $ | 2,600 | $ | 2,135 | $ | 465 | 21.8 | % | ||||||||||||||||||
| Other revenue | 212 | 187 | 25 | 13.4 | ||||||||||||||||||||||
| Total operating revenues | $ | 2,812 | $ | 2,322 | $ | 490 | 21.1 | % | ||||||||||||||||||
| Average fare | $ | 245.11 | $ | 205.67 | $ | 39.44 | 19.2 | % | ||||||||||||||||||
| Yield per passenger mile (cents) | 18.01 | 14.86 | 3.15 | 21.2 | ||||||||||||||||||||||
| Passenger revenue per ASM (cents) | 15.06 | 12.65 | 2.41 | 19.1 | ||||||||||||||||||||||
| Operating revenue per ASM (cents) | 16.28 | 13.75 | 2.53 | 18.4 | ||||||||||||||||||||||
| Average stage length (miles) | 1,289 | 1,317 | (28) | (2.1) | ||||||||||||||||||||||
| Revenue passengers (thousands) | 10,607 | 10,381 | 226 | 2.2 | ||||||||||||||||||||||
| Revenue passenger miles (millions) | 14,439 | 14,372 | 67 | 0.5 | ||||||||||||||||||||||
| Available seat miles (ASMs) (millions) | 17,268 | 16,884 | 384 | 2.3 | ||||||||||||||||||||||
| Load factor | 83.6 | % | 85.1 | % | (1.5) | pts. | ||||||||||||||||||||
Passenger revenue is our primary source of revenue, which includes seat revenue and baggage fees, as well as revenue from our ancillary product offerings such as EvenMore®. Passenger revenue increased 21.8% for the three months ended September 30, 2026 compared to the same period in 2025. This was mainly driven by a 21.2% higher yield and a 2.2% increase in revenue passengers compared to the prior period.
Other revenue increased $25 million, or 13.4%, primarily due to higher customer spend related to loyalty revenue from the non-transportation elements of the sale of TrueBlue® points. Other revenue also includes revenue from the sale of vacation packages, airport concessions, charters, advertising, and lounge revenue.
We measure capacity in terms of available seat miles, which represents the number of seats available for passengers multiplied by the number of miles the seats are flown. Yield, or the average amount one passenger pays to fly one mile, is calculated by dividing passenger revenue by revenue passenger miles. We attempt to increase passenger revenue by increasing our yield and also increasing our load factor of flights, when possible. Our objective is to optimize our fare mix to increase our overall revenue per available seat mile while continuing to provide our customers with competitive fares.
(1) Refer to "Regulation G Reconciliation of Non-GAAP Financial Measures" at the end of this section for more information on this non-GAAP measure.
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PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Operating Expenses
In detail, our operating costs per ASM, were as follows:
| (in millions; per ASM data in cents; percent changes based on unrounded numbers) | Three Months Ended September 30, | Year-over-Year Change | Cents per ASM | ||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | $ | % | 2026 | 2025 | % Change | |||||||||||||||||||||||||||||||||||
| Aircraft fuel | $ | 868 | $ | 539 | $ | 329 | 61.0 | % | 5.03 | 3.19 | 57.5 | % | |||||||||||||||||||||||||||||
| Salaries, wages and benefits | 946 | 865 | 81 | 9.4 | 5.48 | 5.12 | 6.9 | ||||||||||||||||||||||||||||||||||
| Landing fees and other rents | 199 | 179 | 20 | 11.1 | 1.15 | 1.06 | 8.7 | ||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 186 | 173 | 13 | 7.4 | 1.08 | 1.03 | 5.1 | ||||||||||||||||||||||||||||||||||
| Aircraft rent | 19 | 21 | (2) | (8.3) | 0.11 | 0.12 | (10.4) | ||||||||||||||||||||||||||||||||||
| Sales and marketing | 92 | 78 | 14 | 17.2 | 0.53 | 0.46 | 14.5 | ||||||||||||||||||||||||||||||||||
| Maintenance, materials and repairs | 204 | 210 | (6) | (2.3) | 1.18 | 1.24 | (4.5) | ||||||||||||||||||||||||||||||||||
| Special items | 33 | 5 | 28 | NM (1) | 0.19 | 0.03 | NM | ||||||||||||||||||||||||||||||||||
| Other operating expenses | 409 | 352 | 57 | 15.9 | 2.37 | 2.09 | 13.4 | ||||||||||||||||||||||||||||||||||
| Total operating expenses | $ | 2,956 | $ | 2,422 | $ | 534 | 22.1 | % | 17.12 | 14.34 | 19.4 | % | |||||||||||||||||||||||||||||
(1) Not meaningful or greater than 100% change.
Aircraft Fuel
Aircraft fuel increased by $329 million, or 61.0%, for the three months ended September 30, 2026 compared to the same period in 2025. The average fuel price increased by 57.4% to $3.91 per gallon and fuel consumption increased by 2.3%, or 5 million gallons.
Salaries, wages and benefits
Salaries, wages and benefits increased by $81 million or 9.4%, for the three months ended September 30, 2026 compared to the same period in 2025, primarily driven by higher overtime and incentive pay due to operational disruptions as well as pay rate increases.
Landing Fees and Other Rents
Landing fees and other rents increased by $20 million, or 11.1%, for the three months ended September 30, 2026 compared to the same period in 2025, primarily due to rate increases in certain cities.
Depreciation and Amortization
Depreciation and amortization increased by $13 million, or 7.4%, for the three months ended September 30, 2026 compared to the same period in 2025. This increase was primarily driven by the induction of new aircraft and spare engines, partially offset by the retirement of the Embraer E190 fleet as part of the Company's fleet transition plan.
Aircraft Rent
Aircraft rent decreased by $2 million, or 8.3%, in the three months ended September 30, 2026 compared to the same period in 2025, primarily due to fewer leases for Airbus A320 aircraft and Embraer E190 aircraft. As part of the Company's fleet transition plan, Embraer E190 aircraft leases reached their lease expiration and were returned to the lessor. The decrease was partially offset by an increase in the number of leased engines.
Sales and Marketing
Sales and marketing increased by $14 million, or 17.2%, in the three months ended September 30, 2026 compared to the same period in 2025, primarily due to higher credit card fees as a result of the increase in passenger revenue.
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PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Special Items
For the three months ended September 30, 2026, special items consisted of a $33 million adjustment to litigation reserves. For the three months ended September 30, 2025, special items consisted of $3 million relating to severance expenses and $2 million relating to other special items.
Other Operating Expenses
Other operating expenses increased by $57 million, or 15.9%, in the three months ended September 30, 2026 compared to the same period in 2025. The increase was driven by lower net gains on asset sale transactions, primarily related to E190 aircraft and engine sales, as well as higher airport-related costs due to contractual rate increases and network changes. The increase also reflects higher costs associated with operational disruption events.
Other Income (Expense)
| (in millions; percent changes based on unrounded numbers) | Three Months Ended September 30, | Year-over-Year Change | ||||||||||||||||||||||||
| 2026 | 2025 | $ | % | |||||||||||||||||||||||
| Interest expense | $ | (149) | $ | (146) | $ | (3) | 2.3 | % | ||||||||||||||||||
| Interest income | 17 | 30 | (13) | (45.4) | ||||||||||||||||||||||
| Capitalized interest | 1 | 2 | (1) | (32.0) | ||||||||||||||||||||||
| Gain on investments, net | — | 8 | (8) | (94.3) | ||||||||||||||||||||||
| Other | 5 | 10 | (5) | (53.2) | ||||||||||||||||||||||
| Total other expense | $ | (126) | $ | (96) | $ | (30) | 32.2 | % | ||||||||||||||||||
Interest Income
Interest income decreased by $13 million, or 45.4%, for the three months ended September 30, 2026 compared to the same period in 2025, driven by lower short-term investment balances.
Gain on investments, net
Gain on investments, net decreased by $8 million for the three months ended September 30, 2026, compared to the same period in 2025, primarily due to lower current year realized gains from maturities of available-for-sale securities.
Other
Other income decreased by $5 million, or 53.2%, for the three months ended September 30, 2026 compared to the same period in 2025. This decrease was primarily due to lower income recorded related to our share of equity method investees' financial results compared to the prior year.
Income Taxes
For the three months ended September 30, 2026, we recorded an income tax benefit of $13 million, compared to an income tax benefit of $53 million for the same period in 2025, with the decrease primarily due to a valuation allowance included in our forecasted annual effective tax rate that offsets most of the income tax benefit for the current period.
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PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Nine Months Ended September 30, 2026 vs. 2025
Overview
We reported a net loss of $823 million, an operating loss of $509 million and an operating margin of (6.6)% for the nine months ended September 30, 2026. This compares to a net loss of $425 million, an operating loss of $268 million and an operating margin of (3.9)% for the nine months ended September 30, 2025. Our loss per share was $2.20 for the nine months ended September 30, 2026 compared to a loss per share of $1.18 for the same period in 2025. Net loss increased $398 million year-over-year primarily due to an increase in fuel expense and higher salaries, wages and benefits and other operating expenses, largely attributable to operational disruption events during the year, lower current year net gains related to asset sale transactions, as well as a lower current year income tax benefit. The increases in expense were partially offset by higher revenue driven by stronger demand and higher fares.
Our reported results for the nine months ended September 30, 2026 and 2025 included the effects of special items and certain gains on investments. Adjusting for these items, our adjusted net loss (1) was $795 million, adjusted operating loss (1) was $476 million, adjusted operating margin (1) was (6.1)%, and adjusted loss per share (1) was $2.12 for the nine months ended September 30, 2026. This compares to an adjusted net loss (1) of $412 million, adjusted operating loss (1) of $239 million, adjusted operating margin (1) of (3.5)%, and adjusted loss per share (1) of $1.15 for the nine months ended September 30, 2025.
Operating Revenues
| (Revenues in millions; percent changes based on unrounded numbers) | Nine Months Ended September 30, | Year-over-Year Change | ||||||||||||||||||||||||
| 2026 | 2025 | $ | % | |||||||||||||||||||||||
| Passenger revenue | $ | 7,135 | $ | 6,284 | $ | 851 | 13.6 | % | ||||||||||||||||||
| Other revenue | 614 | 534 | 80 | 14.8 | ||||||||||||||||||||||
| Total operating revenues | $ | 7,749 | $ | 6,818 | $ | 931 | 13.7 | % | ||||||||||||||||||
| Average fare | $ | 234.59 | $ | 212.16 | $ | 22.43 | 10.6 | % | ||||||||||||||||||
| Yield per passenger mile (cents) | 17.30 | 15.48 | 1.82 | 11.8 | ||||||||||||||||||||||
| Passenger revenue per ASM (cents) | 14.33 | 12.79 | 1.54 | 12.1 | ||||||||||||||||||||||
| Operating revenue per ASM (cents) | 15.57 | 13.88 | 1.69 | 12.2 | ||||||||||||||||||||||
| Average stage length (miles) | 1,298 | 1,308 | (10) | (0.8) | ||||||||||||||||||||||
| Revenue passengers (thousands) | 30,416 | 29,618 | 798 | 2.7 | ||||||||||||||||||||||
| Revenue passenger miles (millions) | 41,237 | 40,600 | 637 | 1.6 | ||||||||||||||||||||||
| Available seat miles (ASMs) (millions) | 49,778 | 49,126 | 652 | 1.3 | ||||||||||||||||||||||
| Load factor | 82.8 | % | 82.6 | % | 0.2 | pts. | ||||||||||||||||||||
Passenger revenue is our primary source of revenue, which includes seat revenue and baggage fees, as well as revenue from our ancillary product offerings such as EvenMore®. Passenger revenue increased 13.6% for the nine months ended September 30, 2026 compared to the same period in 2025. This was mainly driven by a 11.8% higher yield and a 2.7% increase in revenue passengers compared to the prior period.
Other revenue increased $80 million, or 14.8%, primarily due to higher customer spend related to loyalty revenue from the non-transportation elements of the sale of TrueBlue® points. Other revenue also includes revenue from the sale of vacation packages, airport concessions, charters, advertising, and lounge revenue.
We measure capacity in terms of available seat miles, which represents the number of seats available for passengers multiplied by the number of miles the seats are flown. Yield, or the average amount one passenger pays to fly one mile, is calculated by dividing passenger revenue by revenue passenger miles. We attempt to increase passenger revenue by increasing our yield and also increasing our load factor of flights, when possible. Our objective is to optimize our fare mix to increase our overall revenue per available seat mile while continuing to provide our customers with competitive fares.
(1) Refer to "Regulation G Reconciliation of Non-GAAP Financial Measures" at the end of this section for more information on this non-GAAP measure.
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PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Operating Expenses
In detail, our operating costs per ASM, were as follows:
| (in millions; per ASM data in cents; percent changes based on unrounded numbers) | Nine Months Ended September 30, | Year-over-Year Change | Cents per ASM | ||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | $ | % | 2026 | 2025 | % Change | |||||||||||||||||||||||||||||||||||
| Aircraft fuel | $ | 2,352 | $ | 1,554 | $ | 798 | 51.4 | % | 4.73 | 3.16 | 49.4 | % | |||||||||||||||||||||||||||||
| Salaries, wages and benefits | 2,717 | 2,579 | 138 | 5.3 | 5.46 | 5.24 | 4.0 | ||||||||||||||||||||||||||||||||||
| Landing fees and other rents | 551 | 509 | 42 | 8.2 | 1.10 | 1.04 | 6.8 | ||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 548 | 512 | 36 | 6.9 | 1.10 | 1.04 | 5.5 | ||||||||||||||||||||||||||||||||||
| Aircraft rent | 49 | 60 | (11) | (18.2) | 0.10 | 0.12 | (19.2) | ||||||||||||||||||||||||||||||||||
| Sales and marketing | 252 | 225 | 27 | 12.1 | 0.50 | 0.46 | 10.6 | ||||||||||||||||||||||||||||||||||
| Maintenance, materials and repairs | 602 | 598 | 4 | 0.7 | 1.21 | 1.22 | (0.6) | ||||||||||||||||||||||||||||||||||
| Special items | 33 | 29 | 4 | 17.2 | 0.07 | 0.06 | 15.7 | ||||||||||||||||||||||||||||||||||
| Other operating expenses | 1,154 | 1,020 | 134 | 13.2 | 2.32 | 2.08 | 11.7 | ||||||||||||||||||||||||||||||||||
| Total operating expenses | $ | 8,258 | $ | 7,086 | $ | 1,172 | 16.5 | % | 16.59 | 14.42 | 15.0 | % | |||||||||||||||||||||||||||||
Aircraft Fuel
Aircraft fuel increased by $798 million, or 51.4%, for the nine months ended September 30, 2026 compared to the same period in 2025. The average fuel price increased by 50.2% to $3.73 per gallon while fuel consumption was relatively consistent with the prior-year period.
Salaries, wages and benefits
Salaries, wages and benefits increased by $138 million or 5.3%, for the nine months ended September 30, 2026 compared to the same period in 2025, primarily driven by pay rate increases and higher overtime and incentive pay due to operational disruptions.
Landing Fees and Other Rents
Landing fees and other rents increased by $42 million, or 8.2%, for the nine months ended September 30, 2026 compared to the same period in 2025, primarily due to rate increases in certain cities.
Depreciation and Amortization
Depreciation and amortization increased by $36 million, or 6.9%, for the nine months ended September 30, 2026 compared to the same period in 2025. This increase was primarily driven by the induction of new aircraft and spare engines, partially offset by the retirement of the Embraer E190 fleet as part of the Company's fleet transition plan.
Aircraft Rent
Aircraft rent decreased by $11 million, or 18.2%, in the nine months ended September 30, 2026 compared to the same period in 2025, primarily due to fewer leases for Airbus A320 aircraft and Embraer E190 aircraft. As part of the Company's fleet transition plan, Embraer E190 aircraft leases reached their lease expiration and were returned to the lessor. The decrease was partially offset by an increase in the number of leased engines.
Sales and Marketing
Sales and marketing increased by $27 million, or 12.1%, in the nine months ended September 30, 2026 compared to the same period in 2025, primarily due to higher credit card fees as a result of the increase in passenger revenue.
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PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Special Items
For the nine months ended September 30, 2026, special items consisted of a $33 million adjustment to litigation reserves. For the nine months ended September 30, 2025, special items consisted of $27 million relating to severance expenses and $2 million relating to other special items.
Other Operating Expenses
Other operating expenses increased by $134 million, or 13.2%, in the nine months ended September 30, 2026 compared to the same period in 2025. The increase was primarily driven by lower net gains on asset sale transactions, reflecting fewer sale-leaseback transactions compared to the prior year, as well as higher airport-related costs due to contractual rate increases and network changes. The increase also reflects higher costs associated with operational disruption events.
Other Income (Expense)
| (in millions; percent changes based on unrounded numbers) | Nine Months Ended September 30, | Year-over-Year Change | ||||||||||||||||||||||||
| 2026 | 2025 | $ | % | |||||||||||||||||||||||
| Interest expense | $ | (440) | $ | (441) | $ | 1 | (0.1) | % | ||||||||||||||||||
| Interest income | 57 | 101 | (44) | (44.1) | ||||||||||||||||||||||
| Capitalized interest | 3 | 8 | (5) | (57.6) | ||||||||||||||||||||||
| Gain on investments, net | 4 | 12 | (8) | (63.5) | ||||||||||||||||||||||
| Other | 8 | 27 | (19) | (69.2) | ||||||||||||||||||||||
| Total other expense | $ | (368) | $ | (293) | $ | (75) | (25.7) | % | ||||||||||||||||||
Interest Income
Interest income decreased by $44 million, or 44.1%, for the nine months ended September 30, 2026 compared to the same period in 2025. This decrease was primarily driven by lower short-term investment balances.
Gain on investments, net
Gain on investments, net resulted in a $4 million gain for the nine months ended September 30, 2026, compared to a $12 million gain for the same period in 2025, primarily due to lower current year realized gains from maturities of available-for-sale securities.
Other
Other income decreased by $19 million, or 69.2%, for the nine months ended September 30, 2026 compared to the same period in 2025. This decrease was primarily due to lower income recorded related to our share of equity method investees' financial results compared to the prior year.
Income Taxes
For the nine months ended September 30, 2026, we recorded an income tax benefit of $54 million, compared to an income tax benefit of $136 million for the same period in 2025, with the decrease primarily due to a valuation allowance included in our forecasted annual effective tax rate that offsets most of the income tax benefit for the current period.
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PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Operational Statistics
The following table sets forth our operating statistics for the three and nine months ended September 30, 2026 and 2025:
| Three Months Ended September 30, | Year-over-Year Change | Nine Months Ended September 30, | Year-over-Year Change | ||||||||||||||||||||||||||||||||||||||
| (percent changes based on unrounded numbers) | 2026 | 2025 | % | 2026 | 2025 | % | |||||||||||||||||||||||||||||||||||
| Operational Statistics | |||||||||||||||||||||||||||||||||||||||||
| Revenue passengers (thousands) | 10,607 | 10,381 | 2.2 | 30,416 | 29,618 | 2.7 | |||||||||||||||||||||||||||||||||||
| Revenue passenger miles (RPMs) (millions) | 14,439 | 14,372 | 0.5 | 41,237 | 40,600 | 1.6 | |||||||||||||||||||||||||||||||||||
| Available seat miles (ASMs) (millions) | 17,268 | 16,884 | 2.3 | 49,778 | 49,126 | 1.3 | |||||||||||||||||||||||||||||||||||
| Load factor | 83.6 | % | 85.1 | % | (1.5) | pts | 82.8 | % | 82.6 | % | 0.2 | pts | |||||||||||||||||||||||||||||
Aircraft utilization (hours per day) (1) | 10.0 | 10.1 | (0.6) | 9.9 | 10.0 | (1.0) | |||||||||||||||||||||||||||||||||||
| Average fare | $ | 245.11 | $ | 205.67 | 19.2 | $ | 234.59 | $ | 212.16 | 10.6 | |||||||||||||||||||||||||||||||
| Yield per passenger mile (cents) | 18.01 | 14.86 | 21.2 | 17.30 | 15.48 | 11.8 | |||||||||||||||||||||||||||||||||||
| Passenger revenue per ASM (cents) | 15.06 | 12.65 | 19.1 | 14.33 | 12.79 | 12.1 | |||||||||||||||||||||||||||||||||||
| Operating revenue per ASM (cents) | 16.28 | 13.75 | 18.4 | 15.57 | 13.88 | 12.2 | |||||||||||||||||||||||||||||||||||
| Operating expense per ASM (cents) | 17.12 | 14.34 | 19.4 | 16.59 | 14.42 | 15.0 | |||||||||||||||||||||||||||||||||||
Operating expense per ASM, excluding fuel (cents) (2) | 11.78 | 11.02 | 7.0 | 11.69 | 11.10 | 5.3 | |||||||||||||||||||||||||||||||||||
| Departures | 82,669 | 79,016 | 4.6 | 236,834 | 232,578 | 1.8 | |||||||||||||||||||||||||||||||||||
| Average stage length (miles) | 1,289 | 1,317 | (2.1) | 1,298 | 1,308 | (0.8) | |||||||||||||||||||||||||||||||||||
Average number of operating aircraft during period (1) | 297 | 287 | 3.5 | 293 | 287 | 2.1 | |||||||||||||||||||||||||||||||||||
| Average fuel cost per gallon | $ | 3.91 | $ | 2.49 | 57.4 | $ | 3.73 | $ | 2.48 | 50.2 | |||||||||||||||||||||||||||||||
| Fuel gallons consumed (millions) | 222 | 217 | 2.3 | 630 | 625 | 0.8 | |||||||||||||||||||||||||||||||||||
| Average number of full-time equivalent crewmembers | 19,882 | 19,525 | 1.8 | 19,725 | 19,208 | 2.7 | |||||||||||||||||||||||||||||||||||
(1) This table includes aircraft that have been temporarily removed from service, including two aircraft impacted by the Pratt & Whitney engine groundings. All aircraft temporarily removed from service are expected to return to operation in the future.
(2) Refer to "Regulation G Reconciliation of Non-GAAP Financial Measures" at the end of this section for more information on this non-GAAP measure.
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PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
The airline business is capital intensive. Our ability to successfully execute our growth plans is largely dependent on the continued availability of capital on attractive terms. In addition, our ability to successfully operate our business depends on maintaining sufficient liquidity. We believe we have adequate resources from a combination of cash and cash equivalents, investment securities on hand, and available lines of credit. Additionally, our unencumbered assets could be an additional source of liquidity, if necessary.
As part of our fleet strategy, we have deferred certain aircraft deliveries in prior periods to better align capacity with demand and reduce near-term capital expenditures. In parallel, we are investing in targeted modifications to certain Airbus A320 aircraft, based on operational needs, to extend useful lives and support more efficient utilization of our existing assets. This strategy is intended to optimize utilization of our existing fleet, enhance financial flexibility, and moderate capital spending in the near term while preserving long-term operational capacity. In connection with these initiatives, we revised the estimated useful lives and residual values of certain aircraft, and reflected the changes prospectively in depreciation expense. While these changes affect depreciation expense, they did not have a material impact on our results of operations. We expect these actions to support our broader objective of navigating demand volatility while strengthening our financial position over time.
In the future, we may decide to seek additional financing or to further increase our capital resources by issuing shares of our capital stock, offering debt or other equity securities or refinancing outstanding debt or securities. Issuing additional shares of our capital stock, other equity securities or additional securities convertible into equity may dilute the economic and voting rights of our existing stockholders, reduce the market price of our common stock, or both. Our debt agreements contain various affirmative, negative and financial covenants and complying with certain of these covenants, or entering into agreements with additional covenants, may restrict our ability to pursue our strategy or otherwise constrain our operations. Failure to comply with these covenants could lead to an event of default under the agreements, which may result in, among other things, an acceleration of outstanding obligations under such agreements. Our decision to issue securities in any future offering will depend on market conditions and other factors beyond our control, which may adversely affect the availability, amount, timing, or nature of our future offerings. As a result, holders of our common stock bear the risk that our future offerings may reduce the market price of our common stock and dilute their percentage ownership.
In July 2026, the Company was selected as the successful bidder to acquire 22 operating authorizations (slots) previously operated by Spirit Airlines at New York's LaGuardia Airport for an aggregate purchase price of $58.5 million. Following receipt of regulatory approval, the Company completed the acquisition in October 2026.
At September 30, 2026, we had $2.2 billion in liquidity, which includes $1.6 billion in unrestricted cash, cash equivalents, and investment securities and our $600 million undrawn Citibank line of credit. We believe this will be sufficient to satisfy our liquidity needs for at least the next 12 months from the date of this Report, and we expect to meet our long-term liquidity needs with our projected cash from operations, available lines of credit and debt financing.
On April 1, 2026, the Company paid in full its 0.50% convertible senior notes due 2026, including $325 million of principal and $1 million of interest. A portion of this payment was funded using amounts previously held in escrow pursuant to the Company's revolving credit facility agreement with Citibank. Following this repayment, the Company has no remaining obligations under these notes.
On April 14, 2026, the Company entered into an agreement providing for up to $500 million in debt financing, secured by certain owned A321, A320, and A220 aircraft. As of September 30, 2026, the Company had borrowed an aggregate of $500 million under the agreement. The borrowings have maturities ranging from 2033 through 2036 and interest rates based on U.S. Treasury rates plus an applicable margin. In addition, the agreement provides for $250 million in incremental aircraft-secured financing beyond the initial $500 million commitment. During the third quarter of 2026, the Company satisfied the applicable requirements to access this additional financing, including delivery of the required advance notice. Funding is expected in the fourth quarter of 2026, subject to the completion of customary funding mechanics.
We believe a healthy liquidity position is a crucial element of our ability to weather any part of the economic cycle while continuing to execute on our plans for profitable growth and increased returns. Our goal is to continue to be diligent with our liquidity, maintain financial flexibility, and be prudent with capital spending.
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PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Analysis of Cash Flows
Operating Activities
We use operating cash flows to provide working capital for current and future operations. Cash flows used in operating activities were $273 million and $143 million for the nine months ended September 30, 2026 and 2025, respectively. The increase in cash flows used in operating activities was primarily due to higher operating losses driven by increased fuel costs, salaries, wages and benefits, and other operating expenses, including costs associated with operational disruption events. These impacts were partially offset by higher revenue, driven by stronger demand and pricing, as well as favorable cash flow impacts from changes in operating assets and liabilities, particularly a larger increase in air traffic liability compared to the prior year period, reflecting greater year-over-year increases in fares.
Investing Activities
During the nine months ended September 30, 2026, flight equipment capital expenditures included $404 million related to the purchase of aircraft and spare engines as well as aircraft interior modifications. Flight capital expenditures also included $49 million in spare part purchases and $49 million in aircraft pre-delivery deposit payments. Other property and equipment capital expenditures included ground equipment purchases and facilities improvements for $85 million, software purchases for $31 million, and a $6 million deposit for the purchase of LaGuardia slots. Investing activities for the current year also included $165 million in net proceeds from investment securities, $103 million of proceeds primarily from the sale of Embraer E190 airframes, Embraer E190 engines, and other flight equipment, and $8 million for other investing activities.
During the nine months ended September 30, 2025, flight equipment capital expenditures included $563 million related to the purchase of aircraft and spare engines as well as aircraft interior modifications. Flight capital expenditures also included $69 million in spare part purchases and $35 million in aircraft pre-delivery deposit payments. Other property and equipment capital expenditures included ground equipment purchases and facilities improvements for $110 million. Investing activities also included $1.5 billion in net proceeds from investment securities and $190 million of proceeds from the sale of assets and sale-leaseback transactions.
Financing Activities
Financing activities for the nine months ended September 30, 2026 primarily consisted of $495 million in net proceeds from issuance of long-term debt, $658 million in payments on our outstanding debt and finance lease obligations, and issuance of common stock of $19 million related to our crewmember stock purchase plan.
Financing activities for the nine months ended September 30, 2025 primarily consisted of $339 million in payments on our outstanding debt and finance lease obligations and issuance of common stock of $30 million related to our crewmember stock purchase plan.
Working Capital
We had a working capital deficit of $1.6 billion at September 30, 2026 and working capital deficit of $1.2 billion at December 31, 2025, respectively. Our working capital decreased by $467 million primarily due to a decrease in cash and cash equivalents and an increase in air traffic liability, reflecting seasonal trends and higher fares compared to December 31, 2025. These impacts were partially offset by lower current maturities of long-term debt following the repayment of our 0.50% convertible senior notes due in 2026, as well as an increase in inventory.
We expect to meet our obligations as they become due through available cash, investment securities, and internally generated funds, supplemented, as necessary, by financing activities which may be available to us. However, we cannot predict what the effect on our business might be from future developments related to the extremely competitive environment in which we operate, or from events beyond our control, such as volatile or increasing fuel prices, economic conditions, the effectiveness and timing of our efforts to increase fees and fares to align with volatile input costs, weather-related disruptions, airport infrastructure challenges, the spread of infectious diseases, the impact of other airline bankruptcies, restructurings or consolidations, U.S. or international military actions, acts of terrorism, or other external geopolitical events and conditions. We believe there is sufficient liquidity available to us to meet our cash requirements for at least the next 12 months.
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PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
CONTRACTUAL OBLIGATIONS
Our material cash requirements for known contractual and other obligations includes the following (in millions):
| Remainder of 2026 | 2027 | 2028 | 2029 | 2030 | Thereafter | Total | ||||||||||||||||||||||||||||||||||||||
Debt and finance lease obligations (1) | $ | 299 | $ | 1,043 | $ | 1,116 | $ | 2,313 | $ | 1,038 | $ | 5,269 | $ | 11,078 | ||||||||||||||||||||||||||||||
Operating lease obligations (2) | 43 | 162 | 121 | 103 | 98 | 972 | 1,499 | |||||||||||||||||||||||||||||||||||||
| Flight equipment purchase obligations | 185 | 385 | 457 | 445 | 379 | 3,521 | 5,372 | |||||||||||||||||||||||||||||||||||||
Other obligations (3) | 117 | 441 | 443 | 299 | 322 | 51 | 1,673 | |||||||||||||||||||||||||||||||||||||
| Total | $ | 644 | $ | 2,031 | $ | 2,137 | $ | 3,160 | $ | 1,837 | $ | 9,813 | $ | 19,622 | ||||||||||||||||||||||||||||||
The amounts stated above do not include additional obligations incurred as a result of financing activities executed after September 30, 2026.
(1) Includes actual interest and estimated interest for floating-rate debt. Estimated floating rate is equal to Secured Overnight Financing Rate ("SOFR") plus a margin based on September 30, 2026 rates.
(2) Primarily relates to JFK Terminal 5, aircraft and spare engines, and our corporate office in Long Island City.
(3) Amounts primarily include non-cancelable commitments for flight equipment maintenance, infrastructure and information technology.
As of September 30, 2026, we were in compliance with the material covenants of our debt and lease agreements.
In August 2024, JetBlue co-issued with JetBlue Loyalty LP, the TrueBlue® Notes and TrueBlue® Term Loan Facility. The agreements governing the TrueBlue® Notes and TrueBlue® Term Loan Facility contain affirmative, negative and financial covenants including compliance with certain debt service coverage ratios and minimum liquidity requirements. These agreements also contain events of default, including a cross-default to other material indebtedness.
We have $58 million of restricted cash pledged under standby letters of credit related to certain leases that will expire at the end of the related lease terms. Approximately 66% of our owned property and equipment and intangible assets at net book value were pledged or committed to be pledged as security under various loan agreements.
Aircraft
As of September 30, 2026, our operating fleet consisted of (1), (2):
| Aircraft Type | Aircraft Count | |||||||
| Airbus A220 | 67 | |||||||
| Airbus A320 | 129 | |||||||
| Airbus A321 | 63 | |||||||
| Airbus A321neo | 39 | |||||||
| Total | 298 | |||||||
(1) Excludes two Airbus A321neo XLR variant owned aircraft included in assets held for sale.
(2) Includes aircraft that have been temporarily removed from service but are expected to return to operation in the future.
Of our operating fleet, 288 are owned by us and 10 are leased under operating leases. Our owned aircraft include aircraft associated with sale-leaseback transactions that did not qualify as sales for accounting purposes, also referred to as failed sale-leasebacks. As of September 30, 2026, the average age of our operating fleet was 12 years.
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PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Embraer E190 Fleet Transition
In 2025, as part of the Company's fleet transition plan, we retired our remaining Embraer E190 aircraft and entered into definitive agreements to sell the remaining E190 fleet. During the nine months ended September 30, 2026, we completed the sale of our remaining owned Embraer E190 airframes and engines and continued to sell related spare parts, and recorded a net gain of $28 million, which is included in other operating expenses in our consolidated statements of operations. We also returned our remaining leased E190 aircraft.
Flight Equipment Deliveries
As of September 30, 2026, our committed aircraft deliveries include the following aircraft (1):
| Year | Airbus A220 | Airbus A321neo | Total | ||||||||||||||
| Remainder of 2026 | 4 | — | 4 | ||||||||||||||
| 2027 | 7 | — | 7 | ||||||||||||||
| 2028 | 9 | — | 9 | ||||||||||||||
| 2029 | 10 | — | 10 | ||||||||||||||
| 2030 | 2 | 2 | 4 | ||||||||||||||
| Thereafter | 1 | 42 | 43 | ||||||||||||||
Total (2) | 33 | 44 | 77 | ||||||||||||||
(1) The timing of aircraft deliveries and related committed expenditures presented in the table above is based on contractual delivery schedules, adjusted for delivery delays based on management’s current expectations as of the date of this filing. These expectations reflect recent communications from Airbus regarding delivery delays resulting from global supply chain disruptions. Actual delivery timing may differ from the periods presented and remains subject to change due to manufacturer production schedules, supply chain constraints, contractual modifications, regulatory matters and other factors.
(2) In addition, we have options to purchase 20 A220-300 aircraft in 2028 through 2030.
Committed expenditures for our firm aircraft and spare engines include estimated amounts for contractual price escalations and pre-delivery deposits. We expect to meet our pre-delivery deposit requirements for our aircraft by paying cash or by using short-term borrowing facilities for deposits generally required six to 24 months prior to delivery. Any pre-delivery deposits paid by the issuance of notes are fully repaid at the time of delivery of the related aircraft.
Depending on market conditions, we may use a mix of cash and debt financing for aircraft scheduled for delivery in the remainder of 2026. Although we believe debt and/or lease financing should continue to be available to us, we cannot give any assurance that we will be able to secure financing on attractive terms, if at all. To the extent we cannot secure financing on terms we deem attractive, we may be required to pay in cash, further modify our aircraft acquisition plans, or incur higher than anticipated financing costs.
Off-Balance Sheet Arrangements
There have been no material changes to off-balance sheet arrangements from the information provided in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations-Off Balance Sheet Arrangements included in our 2025 Form 10-K.
Critical Accounting Policies and Estimates
There have been no material changes to our critical accounting policies and estimates from the information provided in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations-Critical Accounting Policies and Estimates included in our 2025 Form 10-K.
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PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
REGULATION G RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
We report our financial results in accordance with GAAP; however, we present certain non-GAAP financial measures in this Report. Non-GAAP financial measures are financial measures that are derived from the condensed consolidated financial statements, but that are not presented in accordance with GAAP. We present these non-GAAP financial measures because we believe they provide useful supplemental information that enables a meaningful comparison of our results to others in the airline industry and our prior year results. Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, our financial performance measures prepared in accordance with GAAP. Further, our non-GAAP information may be different from the non-GAAP information provided by other companies. The information below provides an explanation of each non-GAAP financial measure used in this Report and shows a reconciliation of certain non-GAAP financial measures to its most directly comparable GAAP financial measure.
Operating Expenses, excluding Fuel, Other Non-Airline Operating Expenses, and Special Items ("Operating Expenses ex-fuel") and Operating Expense ex-fuel per Available Seat Mile ("CASM ex-fuel")
Operating Expense per Available Seat Mile ("CASM") is a common metric used in the airline industry. Our CASM for the relevant periods are summarized in the table below. We exclude aircraft fuel, operating expenses related to other non-airline businesses, such as Paisly and JetBlue Technology Ventures (JBV), and special items from total operating expenses to determine Operating Expenses ex-fuel, which is a non-GAAP financial measure, and we exclude the same items from CASM to determine CASM ex-fuel, which is also a non-GAAP financial measure. We believe the impact of these special items distorts our overall trends and that our metrics are more comparable with the presentation of our results excluding such impact.
For each of the three and nine months ended September 30, 2026, special items included an adjustment to litigation reserves.
For each of the three and nine months ended September 30, 2025, special items included severance expenses and other special items.
We believe Operating Expenses ex-fuel and CASM ex-fuel are useful for investors because they provide investors the ability to measure our financial performance excluding items that are beyond our control, such as fuel costs, which are subject to many economic and political factors, as well as items that are not related to the generation of an available seat mile, such as operating expense related to certain non-airline businesses and special items. We believe these non-GAAP measures are more indicative of our ability to manage airline costs and are more comparable to measures reported by other major airlines.
The table below provides a reconciliation of our total operating expenses (GAAP measure) to Operating Expenses ex-fuel, and our CASM to CASM ex-fuel for the periods presented.
| NON-GAAP FINANCIAL MEASURE RECONCILIATION OF OPERATING EXPENSE AND OPERATING EXPENSE PER ASM (CASM), EXCLUDING FUEL | ||||||||||||||||||||||||||||||||||||||
| Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
| $ | Cents per ASM | |||||||||||||||||||||||||||||||||||||
| (in millions; per ASM data in cents; percent changes based on unrounded numbers) | 2026 | 2025 | Percent Change | 2026 | 2025 | Percent Change | ||||||||||||||||||||||||||||||||
| Total operating expenses | $ | 2,956 | $ | 2,422 | 22.1 | 17.12 | 14.34 | 19.4 | ||||||||||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||||||||||||||
| Aircraft fuel | 868 | 539 | 61.0 | 5.03 | 3.19 | 57.5 | ||||||||||||||||||||||||||||||||
| Other non-airline expenses | 20 | 18 | 12.6 | 0.12 | 0.10 | 10.1 | ||||||||||||||||||||||||||||||||
| Special items | 33 | 5 | NM (1) | 0.19 | 0.03 | NM | ||||||||||||||||||||||||||||||||
| Operating expenses, excluding fuel | $ | 2,035 | $ | 1,860 | 9.4 | 11.78 | 11.02 | 7.0 | ||||||||||||||||||||||||||||||
(1) Not meaningful or greater than 100% change.
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PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
| NON-GAAP FINANCIAL MEASURE RECONCILIATION OF OPERATING EXPENSE AND OPERATING EXPENSE PER ASM (CASM), EXCLUDING FUEL | ||||||||||||||||||||||||||||||||||||||
| Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
| $ | Cents per ASM | |||||||||||||||||||||||||||||||||||||
| (in millions; per ASM data in cents; percent changes based on unrounded numbers) | 2026 | 2025 | Percent Change | 2026 | 2025 | Percent Change | ||||||||||||||||||||||||||||||||
| Total operating expenses | $ | 8,258 | $ | 7,086 | 16.5 | 16.59 | 14.42 | 15.0 | ||||||||||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||||||||||||||
| Aircraft fuel | 2,352 | 1,554 | 51.4 | 4.73 | 3.16 | 49.4 | ||||||||||||||||||||||||||||||||
| Other non-airline expenses | 56 | 50 | 12.1 | 0.10 | 0.10 | 10.6 | ||||||||||||||||||||||||||||||||
| Special items | 33 | 29 | 17.2 | 0.07 | 0.06 | 15.7 | ||||||||||||||||||||||||||||||||
| Operating expenses, excluding fuel | $ | 5,817 | $ | 5,453 | 6.7 | 11.69 | 11.10 | 5.3 | ||||||||||||||||||||||||||||||
Operating Expense, Operating Loss, Operating Margin, Pre-tax Loss, Pre-tax Margin, Net Loss and Loss per Share, excluding Special Items and Gain on Investments
For each of the three and nine months ended September 30, 2026, special items included an adjustment to litigation reserves.
For each of the three and nine months ended September 30, 2025, special items included severance expenses and other special items.
Certain gains on our investments, net were also excluded from our September 30, 2026 and 2025 non-GAAP results.
We believe the impact of these items distort our overall trends and that our metrics are more comparable with the presentation of our results excluding the impact of these items. The table below provides a reconciliation of our GAAP reported amounts to the non-GAAP amounts excluding the impact of these items for the periods presented.
| NON-GAAP FINANCIAL MEASURE | |||||||||||||||||||||||
| RECONCILIATION OF OPERATING EXPENSE, OPERATING LOSS, OPERATING MARGIN, PRE-TAX LOSS, PRE-TAX MARGIN, NET LOSS, LOSS PER SHARE, EXCLUDING SPECIAL ITEMS AND GAIN ON INVESTMENTS | |||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| (in millions except percentages) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Total operating revenues | $ | 2,812 | $ | 2,322 | $ | 7,749 | $ | 6,818 | |||||||||||||||
| RECONCILIATION OF OPERATING EXPENSE | |||||||||||||||||||||||
| Total operating expenses | $ | 2,956 | $ | 2,422 | $ | 8,258 | $ | 7,086 | |||||||||||||||
| Less: Special items | 33 | 5 | 33 | 29 | |||||||||||||||||||
| Total operating expenses excluding special items | $ | 2,923 | $ | 2,417 | $ | 8,225 | $ | 7,057 | |||||||||||||||
| Percent change | 20.9 | % | 16.5 | % | |||||||||||||||||||
| RECONCILIATION OF OPERATING LOSS | |||||||||||||||||||||||
| Operating loss | $ | (144) | $ | (100) | $ | (509) | $ | (268) | |||||||||||||||
| Add back: Special items | 33 | 5 | 33 | 29 | |||||||||||||||||||
| Operating loss excluding special items | $ | (111) | $ | (95) | $ | (476) | $ | (239) | |||||||||||||||
| RECONCILIATION OF OPERATING MARGIN | |||||||||||||||||||||||
| Operating margin | (5.1) | % | (4.3) | % | (6.6) | % | (3.9) | % | |||||||||||||||
| Operating loss excluding special items | $ | (111) | $ | (95) | $ | (476) | $ | (239) | |||||||||||||||
| Total operating revenues | 2,812 | 2,322 | 7,749 | 6,818 | |||||||||||||||||||
| Adjusted operating margin | (3.9) | % | (4.1) | % | (6.1) | % | (3.5) | % | |||||||||||||||
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PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
| NON-GAAP FINANCIAL MEASURE | |||||||||||||||||||||||
| RECONCILIATION OF OPERATING EXPENSE, OPERATING LOSS, OPERATING MARGIN, PRE-TAX LOSS, PRE-TAX MARGIN, NET LOSS, LOSS PER SHARE, EXCLUDING SPECIAL ITEMS AND GAIN ON INVESTMENTS | |||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| (in millions except percentages) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| RECONCILIATION OF PRE-TAX LOSS | |||||||||||||||||||||||
| Loss before income taxes | $ | (270) | $ | (196) | $ | (877) | $ | (561) | |||||||||||||||
| Add back: Special items | 33 | 5 | 33 | 29 | |||||||||||||||||||
| Less: Gain on investments, net | — | 8 | 4 | 12 | |||||||||||||||||||
| Loss before income taxes excluding special items and gain on investments | $ | (237) | $ | (199) | $ | (848) | $ | (544) | |||||||||||||||
| RECONCILIATION OF PRE-TAX MARGIN | |||||||||||||||||||||||
| Pre-tax margin | (9.6) | % | (8.4) | % | (11.3) | % | (8.2) | % | |||||||||||||||
| Loss before income taxes excluding special items and gain on investments | $ | (237) | $ | (199) | $ | (848) | $ | (544) | |||||||||||||||
| Total operating revenues | 2,812 | 2,322 | 7,749 | 6,818 | |||||||||||||||||||
| Adjusted pre-tax margin | (8.5) | % | (8.6) | % | (10.9) | % | (8.0) | % | |||||||||||||||
| RECONCILIATION OF NET LOSS | |||||||||||||||||||||||
| Net loss | $ | (257) | $ | (143) | $ | (823) | $ | (425) | |||||||||||||||
| Add back: Special items | 33 | 5 | 33 | 29 | |||||||||||||||||||
| Less: Income tax benefit related to special items | 1 | — | 1 | 7 | |||||||||||||||||||
| Less: Gain on investments, net | — | 8 | 4 | 12 | |||||||||||||||||||
| Less: Income tax benefit (expense) related to gain on investments, net | 1 | (2) | — | (3) | |||||||||||||||||||
| Net loss excluding special items and gain on investments | $ | (226) | $ | (144) | $ | (795) | $ | (412) | |||||||||||||||
| CALCULATION OF LOSS PER SHARE | |||||||||||||||||||||||
| Loss per common share | |||||||||||||||||||||||
| Basic | $ | (0.68) | $ | (0.39) | $ | (2.20) | $ | (1.18) | |||||||||||||||
| Add back: Special items | 0.09 | 0.01 | 0.09 | 0.08 | |||||||||||||||||||
| Less: Income tax benefit related to special items | 0.01 | — | — | 0.02 | |||||||||||||||||||
| Less: Gain on investments, net | — | 0.02 | 0.01 | 0.04 | |||||||||||||||||||
| Less: Income tax expense related to gain on investments, net | — | — | — | (0.01) | |||||||||||||||||||
| Basic excluding special items and gain on investments | $ | (0.60) | $ | (0.40) | $ | (2.12) | $ | (1.15) | |||||||||||||||
| Diluted | $ | (0.68) | $ | (0.39) | $ | (2.20) | $ | (1.18) | |||||||||||||||
| Add back: Special items | 0.09 | 0.01 | 0.09 | 0.08 | |||||||||||||||||||
| Less: Income tax benefit related to special items | 0.01 | — | — | 0.02 | |||||||||||||||||||
| Less: Gain on investments, net | — | 0.02 | 0.01 | 0.04 | |||||||||||||||||||
| Less: Income tax expense related to gain on investments, net | — | — | — | (0.01) | |||||||||||||||||||
| Diluted excluding special items and gain on investments | $ | (0.60) | $ | (0.40) | $ | (2.12) | $ | (1.15) | |||||||||||||||
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PART I. FINANCIAL INFORMATION
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Except as described below, there have been no material changes in market risks from the information provided in Item 7A. Quantitative and Qualitative Disclosures About Market Risk included in our 2025 Form 10-K.
Aircraft Fuel
Our results of operations are affected by changes in the price and availability of aircraft fuel. Market risk is estimated as a hypothetical 10% increase in the cost per gallon of fuel as of September 30, 2026. Based on projected fuel consumption for the next 12 months, such an increase would result in an increase to aircraft fuel expense of approximately $376 million. As of September 30, 2026, we did not have any outstanding fuel hedging contracts.
Interest
Our earnings are affected by changes in interest rates due to the impact those changes have on interest expense from variable-rate debt instruments and on interest income generated from our cash and investment balances. The interest rate is fixed for $6.3 billion of our debt and finance lease obligations, with the remaining $2.1 billion having floating interest rates. As of September 30, 2026, if interest rates were on average 100 basis points higher year-over-year, our annual interest expense would increase by approximately $21 million. This amount is determined by considering the impact of the hypothetical change in interest rates on our variable rate debt.
If interest rates were to average 100 basis points lower in 2026 than they were during 2025, our interest income from cash and investment balances would decrease by approximately $13 million. This amount is determined by considering the impact of the hypothetical change in interest rates on the balances of our money market funds.
ITEM 4. CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
We maintain disclosure controls and procedures (as defined in Rule 13a-15(e) or Rule 15d-15(e) under the Exchange Act) that are designed to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and that such information required to be disclosed by us in reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer ("CEO"), and our Chief Financial Officer ("CFO"), as appropriate, to allow timely decisions regarding required disclosure. Management, with the participation of our CEO and CFO, performed an evaluation of the effectiveness of our disclosure controls and procedures as of September 30, 2026. Based on that evaluation, our CEO and CFO concluded that our disclosure controls and procedures were effective as of September 30, 2026.
Changes in Internal Control Over Financial Reporting
There were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) and Rule 15d-15(f) under the Exchange Act) during the quarter ended September 30, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
In the ordinary course of our business, we are party to various legal proceedings and claims which we believe are incidental to the operation of our business. Refer to Note 7 to our condensed consolidated financial statements included in Part I, Item 1 of this Report for additional information.
ITEM 1A. RISK FACTORS
Part I, Item 1A "Risk Factors" of our 2025 Form 10-K includes a discussion of our risk factors which are incorporated herein. There have been no other material changes from the risk factors associated with our business previously disclosed in our 2025 Form 10-K.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS, AND ISSUER PURCHASES OF EQUITY SECURITIES
(a) None.
(b) Not applicable.
(c) None.
ITEM 5. OTHER INFORMATION
(a) Disclosure in lieu of reporting on a Current Report on Form 8-K.
None.
(b) Material changes to the procedures by which security holders may recommend nominees to the board of directors.
None.
(c) Insider trading arrangements.
During the three months ended September 30, 2026, no director or "officer" (as defined in Rule 16a-1(f) under the Exchange Act) of the Company adopted terminated
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ITEM 6. EXHIBITS
| Exhibit Number | Exhibit | |||||||
| 31.1+ | Rule 13a-14(a)/15d-14(a) Certification of the Chief Executive Officer | |||||||
| 31.2+ | Rule 13a-14(a)/15d-14(a) Certification of the Chief Financial Officer | |||||||
| 32++ | Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |||||||
| 101.INS | Inline XBRL Instance Document - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document. | |||||||
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
| 101.LAB | Inline XBRL Taxonomy Extension Labels Linkbase Document | |||||||
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document and contained in Exhibit 101) | |||||||
| + | Filed herewith. | |||||||
| ++ | Furnished herewith. | |||||||
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| JETBLUE AIRWAYS CORPORATION | ||||||||||||||||||||||||||
| (Registrant) | ||||||||||||||||||||||||||
| Date: | October 26, 2026 | By: | /s/ Dawn Southerton | |||||||||||||||||||||||
| Dawn Southerton | ||||||||||||||||||||||||||
| Vice President, Controller | ||||||||||||||||||||||||||
| (Principal Accounting Officer) | ||||||||||||||||||||||||||
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