JetBlue Just Flew Past Expectations--And the Holiday Rush Hasn't Even Started

JetBlue JBLU just gave investors something they haven't seen in a while: a revenue upgrade. In a regulatory filing Thursday, the airline said third-quarter unit revenue is now expected to fall just 1.5% to 4% year-over-yearless than the previously forecasted 6% dropthanks to stronger-than-expected travel demand that stretched through Labor Day and into September. The key driver? An uptick in costly last-minute bookings, typically made within two weeks of departure, suggesting that travelers are returning with urgency, not just optimism.

The airline also nudged down its cost projections. Non-fuel unit costs are now expected to rise between 3.5% and 5.5%, slightly better than the prior estimate of 4% to 6%. JetBlue credited smoother flight operations and early wins from cost-cutting efforts already underway. Meanwhile, capacity is holding steadyflat to up 1% versus last yearwhich is a mild but meaningful improvement from the previous range of down 1% to up 2%. After months of post-pandemic whiplash, the airline seems to be regaining operational rhythm without overstretching itself.

JetBlue's management says it's encouraged by current trends and believes they could extend into year-end. That's a sharp turn from earlier in 2025, when airlines across the board were spooked by a sudden demand slowdown and pulled full-year guidance altogether. While it's still too early to call a full recovery, this latest update could be the start of a more stable chapterespecially if high-yield traffic keeps flowing and consumers stay resilient. For now, JBLU bulls have a bit more reason to stay in their seats.