JetBlue Cuts Q2 Capacity as Fuel Costs Surge 15%, Guides 9% RASM Growth
JetBlue posted a Q1 loss of $0.87 per share versus estimates of $0.72 on revenue of $2.24 billion (+4.7%), with RASM up 6.5% YoY. Average fuel costs climbed 15.2% to $2.96/gal, prompting a 1% capacity cut and Q2 guidance of 9% RASM growth at $4.13-4.28/gal fuel.
1. Q1 Loss and Revenue Growth
JetBlue reported a Q1 loss of $0.87 per share, missing estimates by $0.15, on revenue of $2.24 billion, up 4.7% year-over-year. Revenue per available seat mile rose 6.5% thanks to steady demand and strong execution.
2. Cost Pressures and Fuel Outlook
Average fuel costs climbed 15.2% year-over-year to $2.96 per gallon, driving adjusted operating expenses per available seat mile up 6.6% and total operating expenses up 8.3%. Operational disruptions added roughly four points of cost pressure.
3. Q2 Guidance and Capacity Adjustments
For Q2, JetBlue expects capacity growth of 1.5% to 4.5% but has trimmed capacity by 1 point to offset fuel pressures. The company guides to approximately 9% RASM growth and anticipates fuel costs between $4.13 and $4.28 per gallon.
4. Liquidity and Financing
JetBlue ended the quarter with $2.4 billion in liquidity and closed $500 million of aircraft-backed financing, bolstering its cash position to support ongoing capacity adjustments and cost-management initiatives.