JetBlue continues to see strong demand even though "the conflict in the Middle East and its impact on fuel prices is the most significant headwind we've faced since Covid," CEO Joanna Geraghty said on a Tuesday morning earnings call.
To deal with the elevated fuel costs, JetBlue is adjusting fares, moderating unproductive capacity and pursuing additional cost savings opportunities, Geraghty said. She added, though, that because the first quarter was already more than 90 percent booked when fuel prices spiked, JetBlue wasn't able to recoup most of those costs during the quarter.
JetBlue CFO Ursula Hurley added that every 10-cent move in fuel equals $85 million of expense for the carrier for the full year.
Still, JetBlue anticipates recapturing 30 percent to 40 percent of fuel costs in the second quarter and 100 percent by early 2027, Geraghty said.
When asked if JetBlue participated in the budget carrier joint request for $2.5 billion in relief from the U.S. government, Geraghty noted that "the last administration contributed to a disadvantage in the industry, whether it's the Spirit-JetBlue proposed merger or the blocking of the NEA," she said. Under the Biden administration, JetBlue's attempt to acquire Spirit Airlines was challenged by the Department of Justice on antitrust grounds and thwarted by a U.S. district judge.
"That is obviously contributing to a sector that is less resilient compared to some of the larger carriers," Geraghty said. "We'll watch, just like you're watching the news, and see how that shakes out with Spirit and the value carriers and if anything comes their way."
JetBlue Q1 Metrics
JetBlue's first-quarter passenger revenue was more than $2 billion, a 4 percent increase year over year. Total revenue exceeded $2.2 billion, a 4.7 percent increase. The carrier's net loss was $319 million compared with a loss of $208 million a year prior.
Capacity for the quarter decreased 1.7 percent year over year. The average fuel cost was $2.96 per gallon, compared with $2.57 for Q1 2025.
JetBlue projects second-quarter capacity to grow 1.5 percent to 4.5 percent, with fuel price projected to be $4.13 to $4.28 per gallon.
Second-quarter revenue per available seat mile is projected to increase 7 percent to 11 percent year over year, while costs per available seat mile minus fuel are expected to increase 3 percent to 5 percent.
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