Key facts
- JetBlue shares surged 20% after raising its revenue forecast.
- The airline aims to achieve $1 EPS target for 2028.
- JetBlue ended the quarter with $2.2 billion in liquidity.
- Unencumbered assets totaled about $7 billion, including $2.8 billion in aircraft and engines.
- Fuel costs rose 57% year-on-year to $3.91 per gallon.
- Short interest in JetBlue stock is at 25%.
JetBlue Airways shares surged 20% after the airline raised its full-year revenue growth forecast and defended its financial position, citing a "significant disconnect" between its earnings and a recent bond sell-off. The carrier expects to achieve its $1 earnings per share target for 2028 despite volatile fuel prices. JetBlue ended the third quarter with $2.2 billion in liquidity and about $7 billion in unencumbered assets, including $2.8 billion in aircraft and engines. However, fuel costs rose 57% year-on-year to $3.91 per gallon, while unit revenue increased 18.4%, highlighting pressure on margins. JetBlue's TrueBlue senior secured note came under heavy selling pressure, with its price halving to about $47 and yields surging to distressed levels above 30% as of October 26.