Jetblue Airways Corp: Form 10-Q for the period ended Sep 30, 2026
Filed with the SEC on Oct 26, 2026 and accepted by EDGAR at Oct 26, 2026, 16:23 ET.
Management's discussion and analysis
As filed, 2,967 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
NON-GAAP FINANCIAL MEASURE RECONCILIATION OF OPERATING EXPENSE AND OPERATING EXPENSE PER ASM (CASM), EXCLUDING FUEL
(in millions; per ASM data in cents; percent changes based on unrounded numbers)
| Nine Months Ended September 30, $Cents per ASM 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
(in millions except percentages)
| Three Months Ended September 30, 2026 | 2025 | Nine Months Ended September 30, 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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Market risk
As filed, 1,697 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
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.
Controls and procedures
As filed, 1,401 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
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.
Risk factors
As filed, 262 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
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.
Figures reported in this filing
Standardized line items from the XBRL in this filing, for the period ended 2026-09-30. Comparative periods it repeats are left out.
| Line item | Period | Value | XBRL concept |
|---|---|---|---|
| Revenue | 3 months2026-07-01 to 2026-09-30 | $2.81bn | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Revenue | 9 months2026-01-01 to 2026-09-30 | $7.75bn | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Operating income | 3 months2026-07-01 to 2026-09-30 | −$144.0m | us-gaap:OperatingIncomeLoss |
| Operating income | 9 months2026-01-01 to 2026-09-30 | −$509.0m | us-gaap:OperatingIncomeLoss |
| Interest expense | 3 months2026-07-01 to 2026-09-30 | $149.0m | us-gaap:InterestExpenseNonoperating |
| Interest expense | 9 months2026-01-01 to 2026-09-30 | $440.0m | us-gaap:InterestExpenseNonoperating |
| Income tax | 3 months2026-07-01 to 2026-09-30 | −$13.0m | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 9 months2026-01-01 to 2026-09-30 | −$54.0m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months2026-07-01 to 2026-09-30 | −$257.0m | us-gaap:NetIncomeLoss |
| Net income | 9 months2026-01-01 to 2026-09-30 | −$823.0m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months2026-07-01 to 2026-09-30 | −$0.68 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 9 months2026-01-01 to 2026-09-30 | −$2.20 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months2026-07-01 to 2026-09-30 | −$0.68 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 9 months2026-01-01 to 2026-09-30 | −$2.20 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months2026-07-01 to 2026-09-30 | 377,300,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 9 months2026-01-01 to 2026-09-30 | 374,700,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 9 months2026-01-01 to 2026-09-30 | −$273.0m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 9 months2026-01-01 to 2026-09-30 | $575.0m | us-gaap:PaymentsToAcquireProductiveAssets |
| Cash and equivalents | At period end2026-09-30 | $1.26bn | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | At period end2026-09-30 | $2.79bn | us-gaap:AssetsCurrent |
| Total assets | At period end2026-09-30 | $15.97bn | us-gaap:Assets |
| Current liabilities | At period end2026-09-30 | $4.42bn | us-gaap:LiabilitiesCurrent |
| Long-term debt | At period end2026-09-30 | $8.39bn | us-gaap:LongTermDebt |
| Shareholders' equity | At period end2026-09-30 | $1.34bn | us-gaap:StockholdersEquity |
| Shares outstanding | At period end2026-09-30 | 377,351,854 shares | dei:EntityCommonStockSharesOutstanding |
Source: SEC EDGAR, the filing index for accession 0001158463-26-000097. Last ingested by Listed: Nov 4, 2026, 18:39 ET. Listed shows no prices and gives no investment advice.