Boeing Burns Less Cash as JetBlue Losses Widen on Fuel

Boeing Co. reported its strongest cash generation in months and a record order book on Tuesday, although its commercial jet unit remained in the red. A day earlier, JetBlue Airways Corp. became the latest carrier to show how soaring fuel costs are wiping out the benefit of record fares.

The planemaker posted third-quarter revenue of $24.2 billion, helped by higher defense and services volumes. It reported a core loss of 34 cents a share. Free cash flow was positive at about 500 million dollars, and the backlog reached a record 745 billion dollars.

The commercial airplanes division posted an operating margin of negative 6.5%. Boeing cited higher projected costs from future production rate changes and from its supply chain. The results come a week after the Federal Aviation Administration certified the 737 Max 10, the largest model in the family, clearing the way for deliveries to begin in the coming months. “We remain focused on safety and quality,” Chief Executive Officer Kelly Ortberg said. “But we are not done.”

JetBlue said on Monday that revenue rose 21% to $2.8 billion in the third quarter. Its fuel bill rose faster, with the price per gallon climbing 57% to 3.91 dollars. The New York-based airline posted an adjusted loss of 60 cents a share, wider than a loss of 40 cents a year earlier.

The carrier expects unit revenue to rise as much as 22% in the fourth quarter but assumes fuel at 4.64 dollars a gallon. It still targets sustained operating profitability next year and earnings of at least 1 dollar a share in 2028.

Chief Executive Officer Joanna Geraghty said she was “very encouraged by the progress we made in the third quarter.” JetBlue said its Blue Sky partnership with United Airlines is gaining traction, with loyalty members redeeming more than 1.1 billion points on United flights since its launch.