Overview
- JetBlue, which reported results Tuesday, logged a $319 million first-quarter net loss, or 86 cents per share, worse than the roughly 73-cent loss Wall Street expected, and the stock slipped in premarket trading.
- Fuel was the main drag as average jet fuel rose 15.2% to $2.96 per gallon in Q1, and the airline now projects $4.13 to $4.28 per gallon in Q2, a jump that squeezes margins because fuel is airlines’ largest variable cost.
- Management trimmed second-quarter capacity by about one percentage point and plans 2 to 3 percentage points less flying in the second half versus prior plans, with all Q2 growth concentrated in Fort Lauderdale to lean into stronger demand.
- The company expects to recapture 30% to 40% of higher fuel costs in Q2 through pricing and network moves and targets full recapture by early 2027.
- JetBlue ended Q1 with $2.4 billion in liquidity, lined up $500 million in aircraft-backed financing with an option to add $250 million, and repaid $325 million in convertible notes to shore up its balance sheet.