JetBlue raises Q2 2026 fuel cost and revenue forecasts

JetBlue Airways updated its second-quarter 2026 outlook on Monday, lifting both its fuel cost forecast and its revenue growth estimate ahead of an industry conference.

The carrier now expects to pay between $4.26 and $4.36 per gallon for fuel in the quarter ending June 30, compared with a prior forecast of $4.13 to $4.28, the company said. The revision reflects rising Brent crude prices during the quarter. Prices have climbed sharply since the conflict began, with industry data showing jet fuel near $142 per barrel in late May, compared with an average of roughly $85 to $90 a barrel before the strikes on Iran earlier in the year, according to Reuters.

Despite the higher fuel costs, JetBlue raised its forecast for revenue per available seat mile — a measure of pricing power — to a range of 9% to 12% year-over-year growth, up from a prior range of 7% to 11%, the company said. The airline said it expects to recapture 40% or more of increased fuel costs in the quarter, helped by consistent operational performance.

JetBlue attributed the stronger revenue outlook to sustained travel demand across cabin types and geographies. The company also noted that routes previously served by Spirit Airlines have produced results above expectations following Spirit's shutdown, the company said. JetBlue added that while it is still early in the third-quarter booking window, it is encouraged that current trends may continue.

The airline reported a completion factor of 99.8% for the quarter to date. Its forecast for operating expenses per available seat mile, excluding fuel, remained unchanged at 3% to 5% growth year-over-year, the company said. Capital expenditure guidance was trimmed to approximately $225 million from a prior estimate of approximately $275 million.

The update comes as fuel price volatility has put pressure on airlines globally. The closure of the Strait of Hormuz, triggered by the U.S.-Israeli attack on Iran, has now stretched into its fourth month, disrupting a waterway that handles close to a fifth of the world's oil and gas shipments, according to Reuters. Carriers of JetBlue's size tend to absorb fuel cost spikes less easily than major airlines, leaving them more exposed when prices spike, according to Reuters. Back in April, the airline pulled its annual guidance and outlined a defensive strategy that included trimming capacity, moderating hiring, and pushing fares higher, according to Reuters.

JetBlue stock rose before the market opened on Monday.

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