JetBlue Airways reported a wider-than-expected loss for the first quarter of 2026, with adjusted losses of 86 cents per share, compared to the 73-cent loss analysts had forecast. Revenue rose 4.7% year-over-year to $2.24 billion, in line with expectations.
Average fuel costs jumped 15.2% to $2.96 per gallon in Q1, and the company expects prices to climb further to between $4.13 and $4.28 per gallon in the second quarter. To offset these rising costs, JetBlue is reducing capacity by 1.7% in Q1 and cutting second-quarter capacity by nearly one percentage point. The airline also plans to reduce capacity in the second half of 2026 by at least 2 to 3 percentage points compared to prior expectations, particularly during off-peak travel periods.
Despite the losses, demand trends strengthened as the quarter progressed, supporting improved yields. Revenue per available seat mile is expected to grow between 7% and 11% in Q2, following a 6.5% increase in Q1. Fort Lauderdale remains a key growth driver, accounting for all expected second-quarter capacity growth.
JetBlue shares initially fell 2.4% in premarket trading but later reversed course to gain about 6% on the day, reflecting a broader recovery in airline stocks. The stock is up about 12% year-to-date, including a 24% gain over the past month.
