JetBlue Airways (NASDAQ:JBLU) shares fell more than 5% after the airline reported a wider-than-expected loss for the fourth quarter, as rising costs and softer demand metrics weighed on results.
The carrier posted a fourth-quarter loss of $0.49 per share, missing Wall Street’s consensus estimate of a $0.45 loss per share.
JetBlue reported $2.24 billion in revenue, down from $2.28 billion in the prior-year quarter but slightly above analyst expectations of $2.22 billion.
Key operational metrics fell short of expectations, signaling softer demand. Load factor came in at 81.5%, below the 83% expected, while available seat miles totaled 15.88 billion, less than the 16.02 billion anticipated.
Revenue passenger miles also missed forecasts at 12.94 billion compared with 13.29 billion, and capacity declined 1.6% year-over-year.
Operating expenses increased notably, with JetBlue reporting higher-than-expected costs per available seat mile (CASM). CASM came in at 14.76 cents versus the 14.49 cents expected, while CASM excluding fuel rose 6.7% year-over-year and overall CASM increased 5.4% year-over-year. These cost pressures came despite relatively moderate fuel prices, which averaged $2.51 per gallon during the quarter.
JetBlue said operating revenue per available seat mile (RASM) increased 0.2% year-over-year, beating its guidance range of a 4% decline to flat, attributed to strength in demand, loyalty, and ancillary revenue.
“While macroeconomic uncertainty impeded our return to profitability in 2025, we have proof points JetForward is working and positioning us for improved financial performance in 2026,” JetBlue CEO Joanna Geraghty said in a statement.
"We saw strong underlying demand during the quarter and I’m very encouraged this momentum has carried forward into early 2026. Additionally, I am optimistic the constructive macroeconomic environment and industry capacity backdrop entering the year will support continued improvement.”
The company ended the period with $2.5 billion in liquidity, representing roughly 27% of trailing twelve-month revenue, excluding a $600 million revolving credit facility.