JetBlue raises revenue outlook despite rising fuel costs
JetBlue increased its second-quarter revenue forecast to between 9% and 12% growth as it captures market share from the recent Spirit Airlines shutdown. While the carrier raised its fuel cost estimates due to global supply disruptions, it expects to recover at least 40% of those expenses.
JETBLUE AIRWAYS CORP raised its second-quarter fuel cost forecast to a range of $4.26 to $4.36 per gallon on Monday. The airline adjusted its outlook from a previous estimate of $4.13 to $4.28 following global price spikes. Higher revenue per available seat mile and gains from a competitor's exit may offset the increased overhead.
### Fuel Spikes and Operational Recovery The United States carrier attributed the revision to rising global jet fuel prices amid disruptions from the closure of the Strait of Hormuz. Despite the cost pressure, JetBlue expects to recapture 40% or more of these expenses during the quarter. Management cited consistent operational performance as a primary driver for this cost recovery.
