UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
For the quarterly period ended
Commission File Number:
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
(Address of principal executive offices, including zip code)
(
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol | Name of each exchange on which registered |
|---|---|---|
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
As of June 30, 2026, the registrant had
Form type: 10-Q
Period end: 2026-06-30
| Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | |
|---|---|---|---|---|
| Revenue | ||||
| Total Revenue | ||||
| Total COGS | ||||
| Gross Profit | ||||
| Aircraft fuel | ||||
| Aircraft rent | ||||
| Depreciation and amortization | ||||
| Landing fees and other rents | ||||
| Maintenance, materials and repairs | ||||
| Other operating costs | 0 | 24,000,000 | 24,000,000 | |
| Other operating expenses | ||||
| Salaries, wages and benefits | ||||
| Selling and marketing | ||||
| Total operating expenses | ||||
| Operating income | - | - | - | |
| Other income (expense) | ||||
| Other income (expense), net | ||||
| Income before income taxes | - | - | - | - |
| Income tax expense (benefit) | - | - | - | - |
| Net Income | - | - | - | - |
| Basic earnings per share | - | - | ||
| Diluted earnings per share | - | - | ||
| Weighted average shares outstanding, basic | ||||
| Weighted average shares outstanding, diluted | ||||
| Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | |
|---|---|---|---|---|
| Net income | -247,000,000 | -74,000,000 | -566,000,000 | -282,000,000 |
| Other comprehensive income (loss), net of tax | 0 | |||
| Comprehensive income | - | - | - | - |
| June 30, 2026 | December 31, 2025 | |
|---|---|---|
| Assets | ||
| Current assets | ||
| Accounts receivable | ||
| Less: allowance for credit losses | ||
| Cash and cash equivalents | ||
| Inventory | ||
| Prepaid expenses and other current assets | ||
| Short-term investments | ||
| Other current assets (derived) | ||
| Total current assets | ||
| Noncurrent assets | ||
| Intangible assets, net | ||
| Finite-lived intangible assets, accumulated amortization | ||
| Long-term investments | 0 | 211,000,000 |
| Operating lease right-of-use assets | ||
| Other noncurrent assets | ||
| Property, plant and equipment | ||
| Other assets (derived) | ||
| Restricted cash and equivalents | 263,000,000 | 349,000,000 |
| Total noncurrent assets | ||
| Total Assets | ||
| Liabilities | ||
| Current liabilities | ||
| Accounts payable | ||
| Accrued compensation | ||
| Current maturities of long-term debt and finance leases | ||
| Deferred revenue | ||
| Finance lease liabilities, current | 0 | 79,000,000 |
| Operating lease liabilities, current | 0 | |
| Other accrued liabilities | ||
| Total current liabilities | ||
| Noncurrent liabilities | ||
| Asset retirement obligations | 0 | 3,000,000 |
| Deferred revenue, noncurrent | ||
| Deferred tax liabilities | ||
| Finance lease liabilities, noncurrent | 0 | 370,000,000 |
| Operating lease liabilities, noncurrent | ||
| Other noncurrent liabilities | ||
| Debt, including current maturities | 8,001,000,000 | 7,342,000,000 |
| Other liabilities (derived) | ||
| Total noncurrent liabilities | ||
| Total Liabilities | ||
| Equity | ||
| Preferred stock | ||
| Preferred stock, par value per share | ||
| Preferred stock, shares authorized | ||
| Preferred stock, shares issued | ||
| Accumulated other comprehensive income (loss) | - | |
| Additional paid-in capital | ||
| Common stock | ||
| Common stock, par value per share | ||
| Common stock, shares authorized | ||
| Common stock, shares issued | ||
| Common stock, shares outstanding | ||
| Retained earnings (accumulated deficit) | ||
| Treasury stock, at cost | - | - |
| Treasury stock, common shares held | ||
| Total Equity | ||
| Total liabilities and equity | ||
| Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | |
|---|---|---|
| Operating activities | ||
| Net income | - | - |
| Depreciation and amortization | ||
| Stock-based compensation | ||
| Deferred income taxes | - | - |
| Changes in operating assets and liabilities, net | ||
| Net cash from operating activities | - | - |
| Investing activities | ||
| Payments for (proceeds from) other investing activities | ||
| Purchases of available-for-sale securities | - | - |
| Proceeds from sales of available-for-sale securities | ||
| Other investing activities (derived) | - | - |
| Net cash from investing activities | - | |
| Financing activities | ||
| Proceeds from issuance of common stock | ||
| Other financing activities (derived) | - | - |
| Proceeds from (payments for) other financing activities | ||
| Net cash from financing activities | - | - |
| Net change in cash | - | |
| Cash at beginning of period | 2,148,000,000 | |
| Cash at end of period | 2,370,000,000 | |
| Supplemental cash flow information | ||
| Cash paid for interest | ||
| Cash paid for income taxes | ||
| Common stock | Additional paid-in capital | Retained earnings (accumulated deficit) | Accumulated other comprehensive income (loss) | Treasury stock, at cost | Total | |
|---|---|---|---|---|---|---|
| Balance at March 31, 2025 | 5,000,000 | 3,332,000,000 | 1,111,000,000 | 7,000,000 | -2,010,000,000 | 2,445,000,000 |
| Net income | - | - | ||||
| Other equity movements | 0 | 40,000,000 | 0 | 0 | -3,000,000 | 37,000,000 |
| Balance at June 30, 2025 | 5,000,000 | 3,372,000,000 | 1,037,000,000 | 7,000,000 | -2,013,000,000 | 2,408,000,000 |
| Balance at March 31, 2026 | 5,000,000 | 3,425,000,000 | 398,000,000 | 0 | -2,018,000,000 | 1,810,000,000 |
| Net income | - | - | ||||
| Other equity movements | 0 | 26,000,000 | 0 | 1,000,000 | -3,000,000 | 24,000,000 |
| Balance at June 30, 2026 | 5,000,000 | 3,451,000,000 | 151,000,000 | 1,000,000 | -2,021,000,000 | 1,587,000,000 |
| Balance at December 31, 2024 | 5,000,000 | 3,320,000,000 | 1,319,000,000 | 2,000,000 | -2,005,000,000 | 2,641,000,000 |
| Net income | - | - | ||||
| Other equity movements | 0 | 52,000,000 | 0 | 5,000,000 | -8,000,000 | 49,000,000 |
| Balance at June 30, 2025 | 5,000,000 | 3,372,000,000 | 1,037,000,000 | 7,000,000 | -2,013,000,000 | 2,408,000,000 |
| Balance at December 31, 2025 | - | - | ||||
| Net income | - | - | ||||
| Other equity movements | 0 | 39,000,000 | 0 | 2,000,000 | -8,000,000 | 33,000,000 |
| Balance at June 30, 2026 | - |
JetBlue Airways Corporation is a public reporting company operating in scheduled air transportation. JETBLUE AIRWAYS CORP is a public reporting company classified under Air Transportation, Scheduled. The accompanying unaudited condensed financial statements as of and for the period ended June 30, 2026 have been prepared from the Company's connected books, and the results of operations for the interim period are not necessarily indicative of the results to be expected for the full fiscal year. The statements cover the period ended 2026-06-30 for JETBLUE AIRWAYS CORP. Revenue is recognized when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services, following the five-step model of ASC 606, Revenue from Contracts with Customers. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is recognized when it is more likely than not that some portion of the deferred tax assets will not be realized. The effective tax rate was 8.7% for the quarter and 6.7% year to date, and unrecognized tax benefits had a beginning balance of $29 million. The Company recorded an income tax benefit of $24 million in the current period compared with a benefit of $20 million in the prior period, and deferred tax liabilities decreased to $399 million from $544 million.
Revenue for the period was $2,697 million, an increase of 14.5% from $2,356 million in the prior period. Revenue recognized from contract liabilities totaled $1.1 billion year to date. Current deferred revenue increased 18.9% to $2,000 million from $1,682 million, and noncurrent deferred revenue increased 12.2% to $737 million from $657 million, while accounts receivable increased 20.9% to $434 million from $359 million. Total costs and expenses were $2,838 million for the quarter and $5,302 million year to date, including depreciation and amortization of $183 million and nonoperating interest expense of $147 million. Aircraft fuel expense increased 80.8% to $911 million from $504 million, salaries, wages and benefits increased 2.7% to $875 million from $852 million, and other operating expenses increased 13.5% to $379 million from $334 million. The Company reported a net loss of $247 million for the period.
Basic earnings per share is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding for the period. Basic and diluted loss per share were each $(0.66), based on weighted-average basic shares outstanding of 375,900,000 with no dilutive share adjustment, and 6,700,000 potentially dilutive shares were excluded from the computation because their effect would have been antidilutive.
Debt, including current maturities, totaled $8,001 million at period end compared with $7,740 million in the prior period, an increase of 3.4%, while current maturities of long-term debt and finance leases decreased 32.9% to $477 million from $711 million. Scheduled principal maturities of long-term debt are $236 million for the remainder of the fiscal year, $478 million in year one, $582 million in year two, $1,835 million in year three, $656 million in year four and $4,691 million thereafter, for total long-term debt principal of $8,478 million. Operating lease liabilities consisted of $97 million classified as current and $811 million classified as noncurrent, the Company had no finance lease liabilities outstanding, and right-of-use assets obtained in exchange for operating lease liabilities were $32 million year to date. Operating lease right-of-use assets decreased 7.2% to $850 million from $916 million, and aircraft rent expense decreased 25.0% to $15 million from $20 million. Total liabilities were $14,784 million and total stockholders' equity was $1,587 million at period end. Stockholders' equity comprised common stock of $5 million, additional paid-in capital of $3,451 million, retained earnings of $151 million, accumulated other comprehensive income of $1 million and treasury stock, at cost, of $2,021 million. Additional paid-in capital increased 2.3% from $3,372 million, retained earnings decreased 85.4% from $1,037 million, accumulated other comprehensive income decreased from $7 million, and treasury stock increased from $2,013 million in the prior period.
The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and the applicable rules and regulations of the Securities and Exchange Commission. In the opinion of management, the financial statements reflect all adjustments necessary for a fair statement of the financial position, results of operations, and cash flows for the periods presented.
The financial statements include the accounts of the Company and its consolidated subsidiaries, if any. All intercompany balances and transactions have been eliminated in consolidation.
The allowance for credit losses reflects expected credit losses over the contractual life of the in-scope financial assets, measured considering historical loss experience, current conditions, and reasonable and supportable forecasts, and is presented as a deduction from the amortized cost basis of the related assets.
Inventories are stated at the lower of cost and net realizable value.
Receivables are recorded at the amounts contractually due from customers and other counterparties, net of any allowance for amounts not expected to be collected.
Property and equipment are stated at cost less accumulated depreciation. Depreciation is recognized over the estimated useful lives of the related assets, generally on a straight-line basis. Expenditures for maintenance and repairs are expensed as incurred.
Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. When the carrying amount of an asset or asset group is not recoverable, an impairment loss is recognized for the amount by which the carrying amount exceeds fair value.
The Company determines whether an arrangement is or contains a lease at inception. For leases with terms greater than twelve months, a right-of-use asset and a corresponding lease liability are recognized at the lease commencement date, measured at the present value of the remaining lease payments over the lease term.
Debt is carried at amortized cost. Debt issuance costs and discounts or premiums are presented as an adjustment to the carrying amount of the related debt and amortized to interest expense over the contractual term of the debt.
Revenue is recognized when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services, following the five-step model of ASC 606, Revenue from Contracts with Customers.
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is recognized when it is more likely than not that some portion of the deferred tax assets will not be realized.
Basic earnings per share is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock, except when the effect would be antidilutive.
Advertising and marketing costs are expensed as incurred and are included in operating expenses in the statements of operations.
Equity instruments issued by the Company are classified in stockholders' equity based on their terms. The components of stockholders' equity and the changes in those components for the periods presented are set forth in the equity note.
The Company evaluates the applicability and impact of Accounting Standards Updates issued by the Financial Accounting Standards Board as they are issued. Adopted updates and updates not yet effective are not expected to have a material effect on the financial statements, except as otherwise described in these notes.
| Current | Prior | |
|---|---|---|
| Current maturities of long-term debt and finance leases | ||
| Debt, including current maturities | 8,001,000,000 | 7,342,000,000 |
| Finance lease liabilities, current | 0 | |
| Finance lease liabilities, noncurrent | 0 | |
| Operating lease liabilities, current | 0 | |
| Operating lease liabilities, noncurrent | ||
| Total debt | 9,386,000,000 | 9,399,000,000 |
| Amount | |
|---|---|
| Remainder of fiscal year | |
| Year one | |
| Year two | |
| Year three | |
| Year four | |
| Thereafter | 4,691,000,000 |
| Total long-term debt principal |
| Current | Prior | |
|---|---|---|
| Property, plant and equipment | ||
| Total property and equipment | 11,252,000,000 | 11,191,000,000 |
| Current | Prior | |
|---|---|---|
| Net carrying amount | 333,000,000 | 415,000,000 |
| Current | Prior | |
|---|---|---|
| Accumulated other comprehensive income (loss) | - | |
| Additional paid-in capital | ||
| Common stock | ||
| Retained earnings (accumulated deficit) | ||
| Treasury stock, at cost | - | - |
| Total stockholders' equity | 1,587,000,000 | 2,120,000,000 |
| Current | Prior | |
|---|---|---|
| Weighted average shares outstanding, basic | ||
| Dilutive effect of potential common shares | ||
| Weighted average shares outstanding, diluted | ||
| Basic earnings per share | -0.66 | -0.21 |
| Diluted earnings per share | - | - |
| Antidilutive securities excluded from diluted EPS |
| Amount | Year to date | Prior year to date | |
|---|---|---|---|
| Right-of-use assets obtained in exchange for operating lease liabilities |
| Amount | Year to date | |
|---|---|---|
| Effective tax rate |
| Current | Prior | |
|---|---|---|
| Deferred tax assets, gross | ||
| Operating loss carryforwards | ||
| Other deferred tax assets | ||
| Valuation allowance | ||
| Deferred tax assets, net | ||
| Capital loss carryforwards | ||
| Deferred income | ||
| Foreign tax credit carryforwards | ||
| Employee benefits | ||
| In-process research and development | ||
| Other tax credit carryforwards | ||
| Interest carryforward | ||
| Deferred rent | ||
| Operating loss carryforwards, pre-tax | ||
| Deferred tax liabilities | ||
| Deferred income tax liabilities | ||
| Property and equipment | ||
| Other deferred tax liabilities | ||
| Leasing arrangements |
| Amount | |
|---|---|
| Balance at beginning of period |
| Current | Prior | |
|---|---|---|
| Portion that would impact the effective tax rate |
| Amount | Year to date | Prior year to date | |
|---|---|---|---|
| Revenue recognized that was included in contract liabilities at the beginning of the period |
| Current | Prior | Year to date | Prior year to date | |
|---|---|---|---|---|
| Total costs and expenses | 2,838,000,000 | 2,350,000,000 | 5,302,000,000 | 4,664,000,000 |
| Depreciation and amortization | 183,000,000 | 171,000,000 | ||
| Interest expense, nonoperating | ||||
| Other nonoperating income (expense), net | ( |
For the period ended June 30, 2026, we generated revenue of $2,697 million, an increase of $341 million, or 14.5%, compared to $2,356 million in the comparable prior-year period. During the preceding year, our network changes continued to progress and we regained our position as Fort Lauderdale's largest airline with new routes and additional frequencies, while continuing to make progress on the JetForward cost program by implementing AI and data science technology, executing operational initiatives, and strengthening efficiencies. [COMPLETE: specific drivers of the current-period revenue increase, including capacity, passenger revenue and other revenue components]. Deferred revenue grew to $2,000 million from $1,682 million, an increase of 18.9%, and noncurrent deferred revenue increased 12.2% to $737 million from $657 million, reflecting growth in customer balances to be recognized in future periods. Notwithstanding the revenue growth, we recorded a net loss of $247 million for the period. This resulted in a basic loss per share of $0.66 on weighted-average basic shares outstanding of 375.9 million.
The most significant driver of the change in our operating expenses was aircraft fuel, which increased $407 million, or 80.8%, to $911 million from $504 million in the prior-year period. [COMPLETE: explanation of fuel price per gallon and consumption drivers behind the fuel expense increase]. Salaries, wages and benefits increased 2.7% to $875 million from $852 million, and other operating expenses increased 13.5% to $379 million from $334 million. Selling and marketing expense rose 15.8% to $88 million from $76 million, while landing fees and other rents and depreciation and amortization each increased 7.0% to $183 million from $171 million. Maintenance, materials and repairs increased 3.0% to $204 million from $198 million, partially offset by a 25.0% decrease in aircraft rent to $15 million from $20 million and the absence of other operating costs, which were $24 million in the prior-year period. Other expense, net, was $130 million compared to $100 million in the prior-year period, an increase of 30.0%. We recorded an income tax benefit of $24 million compared to a benefit of $20 million in the prior-year period.
Our cash and cash equivalents were $1,656 million as of June 30, 2026, a decrease of $479 million, or 22.4%, from $2,135 million in the prior period. Short-term investments declined 60.8% to $364 million from $929 million, and long-term investments of $197 million in the prior period were fully liquidated, while restricted cash and equivalents increased 11.9% to $263 million from $235 million. Debt, including current maturities, was $8,001 million compared to $7,740 million, an increase of 3.4%, while current maturities of long-term debt and finance leases decreased 32.9% to $477 million from $711 million. Property, plant and equipment increased 3.7% to $11,252 million from $10,853 million, reflecting continued investment in our fleet and infrastructure. Total liabilities were $14,784 million and total stockholders' equity was $1,587 million as of the end of the period. Retained earnings decreased 85.4% to $151 million from $1,037 million, primarily reflecting the net loss for the period. Our primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments, and we do not have material foreign currency or commodity price exposure. [COMPLETE: statement of whether management believes existing cash, cash equivalents, investments and available financing are sufficient to meet obligations for at least the next twelve months, and summary of cash flows from operating, investing and financing activities].
We are JetBlue Airways Corporation, and the following discussion addresses our exposure to market risk as of June 30, 2026. Our primary market risk exposure is interest rate risk on our cash, cash equivalents, and short-term investments. As of June 30, 2026, we held cash and cash equivalents of $1,656 million, compared with $2,135 million at the prior period end, a decrease of 22.4%, and short-term investments of $364 million, compared with $929 million at the prior period end, a decrease of 60.8%. We also held restricted cash and equivalents of $263 million, up from $235 million, and our long-term investments declined to zero from $197 million at the prior period end. Because these balances are generally invested in short-duration instruments, changes in prevailing interest rates affect the interest income we earn and, to a lesser extent, the fair value of the portfolio; a hypothetical [COMPLETE: basis point change assumption] change in interest rates would have changed our interest income for the period by approximately [COMPLETE: interest income sensitivity amount].
Our debt, including current maturities, totaled $8,001 million at June 30, 2026, compared with $7,740 million at the prior period end, an increase of 3.4%, while current maturities of long-term debt and finance leases were $477 million, down from $711 million. Interest rate risk on our debt arises from the portion of our borrowings that bears interest at variable rates and from the refinancing of maturing fixed-rate obligations at prevailing market rates; as of June 30, 2026, approximately [COMPLETE: variable-rate debt balance] of our debt bore interest at variable rates, and a hypothetical [COMPLETE: basis point change assumption] increase in interest rates on that debt would have increased our annual interest expense by approximately [COMPLETE: interest expense sensitivity amount]. Other income (expense), net, which includes our interest costs, was $130 million for the period compared with $100 million in the prior period, an increase of 30.0%.
We do not have material foreign currency or commodity price exposure. Aircraft fuel expense was $911 million for the period, compared with $504 million in the prior period, an increase of 80.8%, and aircraft rent expense was $15 million compared with $20 million in the prior period. [COMPLETE: description of any fuel hedging program or confirmation that no fuel derivative positions were outstanding at June 30, 2026]. We have existing aircraft commitments through 2033, and the financing of these commitments may expose us to changes in interest rates at the time such financings are arranged. There have been no other material changes in our market risk exposures during the quarter, and we will continue to monitor these exposures and the effectiveness of our risk management practices in future periods.
Our management, with the participation of our Principal Executive Officer, evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report and concluded that they were effective at the reasonable assurance level. Our certifying officers are responsible for establishing and maintaining disclosure controls and procedures, as defined in Exchange Act Rules 13a-15(e) and 15d-15(e), and internal control over financial reporting, as defined in Exchange Act Rules 13a-15(f) and 15d-15(f). Disclosure controls and procedures are designed to provide reasonable assurance that information required to be disclosed in the reports we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to management to allow timely decisions regarding required disclosure. This evaluation relates to our quarterly report on Form 10-Q for the period ending 2026-06-30, and the accompanying certifications are executed by Geraghty Joanna, Principal Executive Officer of JETBLUE AIRWAYS CORP. [COMPLETE: management to review and formally adopt the effectiveness conclusion language above prior to filing; confirm participation of the Principal Financial Officer in the evaluation.]
There were no changes in our internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable, and not absolute, assurance of achieving the desired control objectives, and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. We will continue to monitor and assess our controls and procedures and will make any changes we determine to be appropriate.
We are involved in legal proceedings arising in the ordinary course of business from time to time. These matters may include claims related to our operations as an air carrier, commercial disputes, employment-related matters, and regulatory inquiries. We evaluate these matters on an ongoing basis and record accruals when a loss is probable and reasonably estimable.
Management does not currently believe any pending matter is material to our financial statements. While the outcome of litigation and other proceedings is inherently uncertain, we do not expect the ultimate resolution of currently pending matters to have a material adverse effect on our financial position, results of operations, or cash flows. We intend to defend ourselves vigorously in any such proceedings.
Our business, financial condition and results of operations are subject to a number of risks and uncertainties, and the following discussion should be read together with the risk factors described in [COMPLETE: reference to the Company's most recent Annual Report on Form 10-K]. JetBlue Airways Corp is a public reporting company classified under Air Transportation, Scheduled, and its principal products, services, markets, and strategy are described in its prior SEC filings. For the period ended June 30, 2026, we generated revenue of $2,697,000,000 and recorded a net loss of $247,000,000, and if the conditions that contributed to this loss persist, our results of operations and financial position could be further adversely affected.
Our results are highly sensitive to the cost of aircraft fuel, which we may be unable to offset through fare increases or other measures. Aircraft fuel expense increased to $911,000,000 in the current period from $504,000,000 in the prior period, an increase of 80.8%, while revenue increased 14.5% to $2,697,000,000 from $2,356,000,000. Other cost categories also increased, including salaries, wages and benefits, which rose 2.7% to $875,000,000, other operating expenses, which rose 13.5% to $379,000,000, and selling and marketing, which rose 15.8% to $88,000,000. Our retained earnings declined 85.4% to $151,000,000 from $1,037,000,000, and continued operating losses could erode our equity base and limit our financial flexibility.
We have a substantial amount of indebtedness and other obligations, and our liquidity position has declined. Debt, including current maturities, totaled $8,001,000,000 at period end, up 3.4% from $7,740,000,000, and our total liabilities were $14,784,000,000 compared with total equity of $1,587,000,000. Cash and cash equivalents decreased 22.4% to $1,656,000,000 from $2,135,000,000, short-term investments decreased 60.8% to $364,000,000 from $929,000,000, and long-term investments declined to zero from $197,000,000. Our primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments, and we do not have material foreign currency or commodity price exposure. A continued reduction in our liquidity, an inability to refinance or service our obligations, or changes in interest rates could adversely affect our ability to fund operations and capital commitments, including our property, plant and equipment, which totaled $11,252,000,000 at period end.
We are involved in legal proceedings arising in the ordinary course of business from time to time, and although management does not currently believe any pending matter is material to the financial statements, the outcome of litigation is inherently uncertain and an adverse result could have a material adverse effect on our business. Management evaluated our disclosure controls and procedures as of the end of the period and concluded they were effective at the reasonable assurance level; however, any future failure to maintain effective controls could impair our ability to report financial results accurately and on a timely basis. The risks described above are not the only risks we face, and additional risks not presently known to us or that we currently deem immaterial may also adversely affect our business, financial condition and results of operations.
During the quarter ended June 30, 2026, the disclosure required by Item 408(a) of Regulation S-K regarding the adoption or termination of Rule 10b5-1 trading arrangements and non-Rule 10b5-1 trading arrangements by directors and officers of JETBLUE AIRWAYS CORP is set forth below.
[COMPLETE: Rule 10b5-1 trading arrangement adoptions and terminations from the D&O questionnaires]