Oct 27, 2026 earnings call — Revenue strength and BlueFirst rollout
Unit revenue rose 18.4% in Q3; company expects fourth-quarter RASM to increase 18% to 22% year-over-year.
Revenue $2.8B (est $2.8B) · EPS $-0.60 (est $-0.54)
Key quotes
"We are seeing JetForward benefits compounding with some of our largest opportunities still ahead."
"In the third quarter, RASM increased nearly 15% year over year on more than 65% capacity growth."
"We ended the quarter with $2.2 billion in liquidity, and approximately $7 billion in unencumbered assets, including $2.8 billion in aircraft and engines."
Analyst Q&A 7
Liquidity options and financing choices
Q (Jamie Baker · JPMorgan): The analyst asked what liquidity options the company is considering next and which assets or deals would come first for raising cash, including loyalty or Paisley. He also asked if those options could exceed issuing debt tied to TrueBlue.
A: Management said they ended the quarter with $2.2 billion of liquidity including the revolver and are focused on aircraft financing in the back half of the year. They noted $2.8 billion in aircraft and engines are available and that other non-debt levers, including Paisley and venture investments, could help bridge to 2028.
"So we are we believe we ended the quarter with a really healthy liquidity position at the $2.2 billion including the revolver." — Ursula L. Hurley (CFO)
How much capital and long-term leverage
Q (Brandon Oglenski · Barclays): The analyst asked how much incremental capital the company might raise given seasonal cash burn and rumors of creditor groups. He also asked what long-term debt level or leverage the company wants.
A: Management reiterated they use 17% to 20% of trailing 12 month revenue as a reference for runway and feel comfortable managing cash uses, with CapEx below $1 billion through the decade. They said the priority is returning to profitability, hitting $1 of EPS and positive free cash flow in 2028, after which deleveraging becomes the focus.
"I mean, at this point, we are focused on driving an operating profit next year and delivering the dollar of EPS and a return to free cash flow in 2028." — Joanna L. Geraghty (CEO)
Fare increases and plane financing timing
Q (Michael Linenberg · Deutsche Bank): The analyst asked whether recent fare increases not fully passing through mean consumers have reached a limit. He also asked if new A220 deliveries will be paid from cash and when net debt might peak.
A: Management said pricing shows resilience and industry prices in 2026 remain below 2019 real prices, and noted 93% of their seats were subject to the recent fare increase. On aircraft funding, they said they have $2.8 billion of unencumbered aircraft and engines, expect to evaluate all markets, and currently believe aircraft financing will continue to be the most efficient option but will analyze alternatives.
"Based on where we sit today, I do believe that is gonna continue to be aircraft, but we will do the appropriate analysis at that point in time." — Ursula L. Hurley (CFO)
BlueFirst early results and reconfiguration speed
Q (Savanthi Syth · Raymond James): The analyst wanted early learnings from BlueFirst and how fast the airline can reconfigure seats next year. He also asked how other focus cities are performing and where growth will come next year.
A: Management said early results show most BlueFirst seats are being bought by existing customers, not by stealing competitors' flyers. They said installation pace is limited by supply chain, they will not finish until later in 2028, but the majority of the fleet will be complete by the end of 2027, and they expect to backfill capacity as new aircraft arrive.
"we will not be done installing until later in 2028." — Martin J. George (PRESIDENT)
Why keep high cash and aircraft value
Q (Atul Maheswari · UBS): The analyst asked why the company keeps liquidity at a high 17%–20% of revenue range and whether that threshold could be lowered to avoid more debt. He also asked if the $2.8 billion unencumbered aircraft base is a Q3 number and how the $250 million accordion affects it.
A: Management said the 17%–20% target reflects current oil volatility and the path to positive operating margin, and that the target could be lowered once the business reaches consistent profitability and positive free cash flow. They confirmed the $2.8 billion figure is as of Q3 close, expect year-end to be roughly the same after funding the $250 million accordion and taking four deliveries, and will add another seven aircraft next year.
"I think as we get the business to consistent profitability, and turning out positive free cash flow, you could see us revise that target to be lower, especially if and when the oil environment settles down." — Ursula L. Hurley (CFO)
New route maturity and upgrade revenue
Q (Daniel McKenzie · Seaport Global): The analyst asked what percent of the network is less than 12 months old and how quickly immature routes raise RASM. He also asked what share of revenue comes from upsells and if that pool is outpacing unit revenue.
A: Management said for fourth quarter 26, 4% of the system is under one year and only 5% is under two years, so the network is largely mature. On upsell revenue they did not provide a number, declined to guess, and said they are using a partner called Plus Grade for upgrades which has been effective while they build more internal capabilities.
"Right now, for fourth quarter 26, 4% of the system is at less than 1 year." — Martin J. George (PRESIDENT)
What drove the RASM beat and Q4 outlook
Q (Catherine O'Brien · Goldman Sachs): The analyst asked what drove the third quarter RASM beat versus July guidance and which parts of the network or cabins were strongest, plus the geographic or capacity assumptions behind the fourth quarter outlook.
A: Management said the big surprise was strength in the trough and a smaller September drop than expected; a fuel-driven fare spike in August helped and "our average fare in September was higher than our average fare in July." They also said they pulled marginal Q4 capacity, international was marginally stronger than domestic, Fort Lauderdale has been a standout, and JetForward initiatives plus loyalty and revenue management upgrades are driving compounding benefits.
"Our average fare in September was higher than our average fare in July." — Martin J. George (PRESIDENT)