JetBlue in the second quarter was able to "recover fuel costs more quickly than we originally anticipated," while demand remained "robust," executives said on a Tuesday morning earnings call.
During the second quarter, JetBlue adjusted both its pricing and capacity in response to higher fuel costs, and with continued strong demand, "we achieved nearly 50 percent fuel recapture, exceeding our expectation of 40 percent or more," JetBlue CEO Joanna Geraghty said. "Sustained demand strength gives us greater visibility into the second half [of the year], even as fuel prices remain very volatile."
Should that demand continue, JetBlue expects to achieve 100 percent fuel recapture by early 2027, Geraghty noted.
As fares increased, "we did not see material signs of elasticity," JetBlue president Marty St. George added. "Demand strength was robust throughout the booking curve, including close-in demand, and that strength has carried into the third quarter."
Similar to the testimony of other carriers, JetBlue's St. George said its premium products during the quarter continued to perform "exceptionally well," adding that the main cabin also had "meaningful improvement."
Meanwhile, the carrier is working with Florida's Broward County Aviation Department to "formalize additional gate leases this fall" at Fort Lauderdale–Hollywood International Airport, Geraghty said. Any additional capacity growth for the rest of 2026 is expected to come from Fort Lauderdale, with capacity across the rest of the network projected to be down year over year, St. George added.
"By this winter, we expect to operate more than 150 daily flights from Fort Lauderdale, our largest schedule ever from the airport, including our largest net presence as well," he said. In the second quarter, Fort Lauderdale revenue per available seat mile increased 11 percent year over year, "even with capacity growth of nearly 40 percent."
JetBlue Q2 Metrics
JetBlue's second-quarter passenger revenue was nearly $2.5 billion, an increase of more than 14 percent year over year. Total operating revenue was about $2.7 billion for an increase of 14.5 percent. Still, the carrier reported a net loss of $247 million compared with a net loss of $74 million a year prior.
Capacity for the second quarter increased 3.2 percent year over year. The average fuel cost was $4.23 per gallon compared with $2.40 per gallon for Q2 2025.
JetBlue's third-quarter outlook includes a projected capacity increase of 3 percent to 6 percent year over year and an average fuel price of $3.49 per gallon. The carrier also reestablished its full-year guidance, which it had previously withdrew, with 2026 capacity expected to be up 1.5 percent to 3.5 percent and fuel costs for the year to average $3.49 per gallon.
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