JetBlue Airways Corp. (NASDAQ:JBLU) stock rose Tuesday after the airline reported second-quarter 2026 results that topped Wall Street estimates, driven by strong travel demand and double-digit growth in revenue per available seat mile (RASM).

Adjusted loss of 66 cents per share beat the 71-cent loss estimate, while revenue rose 14.5% year over year to $2.697 billion, topping the $2.688 billion estimate.

Earnings And Margins

GAAP diluted loss widened to 66 cents per share from 21 cents a year earlier. Net loss increased to $247 million from $74 million.

Passenger revenue rose 14.1% to $2.487 billion, while other revenue increased 18.6% to $210 million. JetBlue posted an operating loss of $141 million, compared with operating income of $6 million.

Operating margin fell to negative 5.2% from positive 0.3%.

Demand And Costs

Capacity increased 3.2%, revenue passenger miles rose 4.1%, and load factor improved 0.8 percentage point to 82.7%.

RASM increased 10.9%, with premium RASM up about 13%, Main Cabin RASM rising 11% and loyalty revenue growing 13%.

CASM rose 17%, while CASM ex-fuel increased 2.4%, 1.6 percentage points better than revised guidance’s midpoint. Fuel price climbed 76.3% to $4.23 per gallon.

JetBlue recaptured nearly half of higher fuel costs and expects full recapture by early 2027. It also secured Pratt & Whitney credits tied to GTF settlements through 2025.

JetForward And Liquidity

Fort Lauderdale RASM increased 11% despite nearly 40% capacity growth. JetBlue expects more than 150 daily departures from the airport this winter.

JetForward generated $470 million of cumulative incremental EBIT through June. The company targets $850 million to $950 million annually by year-end 2027 and about $1.2 billion in 2028.

BlueFirst sales are expected to begin this fall, with most retrofits completed by year-end 2027.

JetBlue expects the product to deliver about 5 percentage points of steady-state RASM improvement.

JetBlue ended the quarter with $1.656 billion in cash and $8.478 billion in debt.

Capital expenditures totaled $234 million. The company also reported more than $6 billion of unencumbered assets.

Outlook

For 2026, JetBlue expects RASM growth of 10% to 12.5%, capacity growth of 1.5% to 3.5%, CASM ex-fuel growth of 2% to 4%, and an adjusted operating margin between negative 2% and negative 5%.

Second-half operating margin is expected to improve about 3.5 percentage points year over year.

JetBlue targets a positive operating margin in 2027 and EPS of at least $1 in 2028, assuming continued demand strength and an average fuel price of $3 per gallon.

Earnings Call Highlights

On the earnings call, JetBlue said travelers continued booking even as ticket prices increased, giving the airline confidence that pricing strength can offset elevated fuel costs.

Management said it recaptured nearly half of the fuel-cost increase during the second quarter and remains on track for full recapture by early 2027, reducing fuel’s influence on its longer-term earnings outlook.

Management said fuel prices alone do not determine JetBlue’s earnings trajectory because the airline can respond through pricing, capacity adjustments and fuel-efficiency initiatives.

JetBlue also highlighted Fort Lauderdale as a major growth opportunity following Spirit Airlines’ exit, with revenue per available seat mile rising 11% despite nearly 40% capacity growth.

The airline reinstated its 2026 outlook and said improving revenue, disciplined capacity and cost execution should drive a meaningful profitability inflection in the second half.

JBLU Price Action: JetBlue Airways shares were trading up 2.30% at $5.56 at the time of publication on Tuesday, according to Benzinga Pro data.

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