JBLU Q2 Earnings Beat on Strong RASM Growth, Revenues Rise

JBLU's Traffic and Pricing Metrics Improve

Passenger revenues increased 14.1% year over year to $2.49 billion, just ahead of our estimate of $2.47 billion. Other revenues climbed 18.6% to $210 million, surpassing our estimate of $188 million. Revenue passengers rose 5.1% and revenue passenger miles advanced 4.1%.

Capacity, measured in available seat miles, increased 3.2%. Load factor (% of seats filled by passengers) improved 0.8 percentage points to 82.7%, matching our estimate, while the average fare rose 8.6% to $237.38. Yield per passenger mile increased 9.6% to 17.53 cents.

JetBlue's Costs Rise on Fuel Pressure

Total operating expenses increased 20.8% year over year to $2.84 billion. Aircraft fuel expense surged 80.7% to $911 million as the average fuel cost per gallon climbed 76.3% to $4.23. Salaries, wages and benefits rose 2.7% to $875 million.

Operating expense per available seat mile increased 17% to 16.53 cents. Excluding fuel and other non-airline expenses, unit costs rose 2.4% to 11.12 cents. JBLU posted an operating loss of $141 million, compared with operating income of $6 million a year ago, while operating margin contracted 5.5 percentage points to negative 5.2%.

JBLU Builds Momentum Across Commercial Initiatives

Premium RASM increased about 13%, while Main Cabin RASM grew 11%. Loyalty revenues rose 13%, supported by record co-brand account engagement, nearly 40% growth in new premium card acquisitions and a 21% increase in loyalty cash remuneration.

JetBlue also highlighted progress in Fort Lauderdale, where RASM rose 11% despite nearly 40% capacity growth. The carrier is restructuring schedules to improve connectivity and expects to operate more than 150 daily departures from the airport this winter.

JetBlue Advances JetForward Execution

JetForward generated $470 million of cumulative incremental EBIT through June 2026. The company remains on track to deliver an annual incremental EBIT benefit of $850-$950 million by year-end 2027.

Operational initiatives also produced gains. On-time arrival performance within 14 minutes improved about 1 point, while Net Promoter Score increased 5 points year over year. JetBlue is using digital tools, predictive analytics and improved routing to raise productivity, fuel efficiency and disruption management.

JBLU Maintains Liquidity Amid Heavy Obligations

Cash and cash equivalents totaled $1.66 billion at June 30, 2026, down from $1.95 billion at Dec. 31, 2025. Investment securities stood at $512 million. Total debt was $8.48 billion, while stockholders’ equity declined to $1.59 billion from $2.12 billion.

Second-quarter capital expenditures, including predelivery deposits, were $234 million. For the first six months of 2026, capital expenditures and predelivery deposits totaled $375 million, compared with $496 million in the prior-year period.

JetBlue Reestablishes 2026 Outlook

For the third quarter of 2026, JBLU expects capacity growth of 3-6% and RASM growth of 12.5-16.5%. CASM, excluding fuel, is projected to increase 2.5-4.5%, while fuel price per gallon is estimated at $3.49. Capital expenditures are forecasted at about $300 million.

For 2026, capacity is expected to rise 1.5-3.5%, with RASM growth of 10-12.5% and CASM ex-fuel rise of 2-4%. Adjusted operating margin is projected between negative 2% and negative 5%. Interest expense is expected to be about $590 million, with capital expenditures of roughly $850 million.

JBLU Sets a 2028 Earnings Target

JetBlue introduced a target of at least $1 in earnings per share for 2028. The goal assumes continued demand strength and an average jet fuel price of $3 per gallon.

The target is supported by expectations for JetForward to deliver about $1.2 billion in annual incremental EBIT in 2028. BlueFirst, the airline’s new domestic first-class product, is expected to begin sales in fall 2026, with most retrofit work scheduled for completion by year-end 2027.

JBLU currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q2 Performance of Other Airline Companies

Delta Air Lines DAL reported second-quarter 2026 earnings (excluding 88 cents from non-recurring items) of $1.56 per share, beating the Zacks Consensus Estimate of $1.51. Earnings declined in double digits (% wise) from a year ago as sharply higher fuel costs pressured profitability.

Revenues rose on a year-over-year basis to $17.67 billion but missed the consensus estimate of $17.76 billion. Broad demand strength lifted adjusted total revenue per available seat mile (“TRASM”) by 12.4%, while premium and diversified revenue streams continued to expand.

United Airlines UAL reported second-quarter 2026 adjusted earnings of $1.99 per share, down 48.6% year over year but above the Zacks Consensus Estimate of $1.92 by 3.7%.

Operating revenues rose 16% to $17.67 billion and were essentially in line with the $17.68-billion consensus mark. A 12.1% increase in TRASM and broad-based gains across premium, loyalty and cargo revenues supported the top line despite sharply higher fuel costs. 

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