Overview
- On Monday, JetBlue revised its second‑quarter jet fuel cost outlook to $4.26–$4.36 per gallon, up from a prior range of $4.13–$4.28.
- The carrier said it expects to recapture 40% or more of the added fuel expense through higher fares and improved operational results and raised its revenue per available seat mile forecast to 9%–12%.
- Jet fuel has jumped from about $85–$90 a barrel before February to roughly $142 a barrel by late May, a rise linked to shipping disruptions in the Strait of Hormuz after U.S. and Israeli actions involving Iran that tightened global supply.
- JetBlue paused its full‑year outlook in April and signaled hiring slowdowns, capacity cuts and fare increases as ways to manage costs, and it reported stronger-than-expected performance on routes formerly operated by Spirit Airlines.
- The surge in fuel is forcing airlines to raise fares and trim frequencies, leaving smaller carriers especially exposed and likely to pass more costs to passengers or cut service in coming months.