JetBlue Airways moved to restore its full-year revenue forecast on Tuesday after stronger passenger demand and higher ticket prices helped the airline claw back fuel expenses more quickly than expected during the second quarter.
The New York-based carrier also announced a long-term earnings goal of at least $1 per share by 2028, pointing to the anticipated benefits of its ongoing strategic overhaul.
“Our second-quarter results demonstrate the progress we’re making on the levers within our control,” said Ursula Hurley, JetBlue’s chief financial officer.
Airlines across the industry have struggled to forecast earnings and fuel costs accurately amid uncertainty stemming from the Middle East conflict involving the U.S., Israel, and Iran. Jet fuel accounts for roughly one-fourth of airline operating expenses, making it one of the most significant cost factors in the business.
Fuel prices had pulled back from their spring peaks after a peace deal was reached between Washington and Tehran in June. However, when fighting between the two nations resumed in July, energy prices climbed again. A pause in the conflict over the weekend pushed oil prices to a one-week low.
The swings in energy markets have added billions of dollars to U.S. airlines’ quarterly expenses, disrupting financial recovery plans — particularly for smaller carriers like JetBlue that have less room to absorb such shocks.
For the April-through-June quarter, JetBlue posted an adjusted loss of 66 cents per share, a significant increase from the 21-cent loss recorded during the same period a year earlier.
Fuel costs for the quarter jumped nearly 81%, tacking on an additional $407 million to the airline’s expenses. JetBlue paid an average of $4.23 per gallon during that stretch.
Looking ahead to the third quarter, the airline expects to pay $3.49 per gallon of jet fuel. JetBlue also reinstated its annual fuel cost projection, now forecasting an average of $3.49 per gallon for all of 2026.
