JetBlue Q1 Loss Widens to $319M, Cuts Capacity Over Rising Fuel Costs
JetBlue reported a $319 million Q1 net loss, widening from $208 million a year earlier, with an 86-cent loss per share versus a 73-cent forecast. Revenue rose 4.7% to $2.2 billion and RASM increased 6.5%, while fuel costs climbed 15.2% to $2.96 per gallon.
1. Q1 Financial Performance
JetBlue posted a net loss of $319 million in Q1 2026 compared with a $208 million loss a year earlier, translating into an 86-cent per share deficit versus a 73-cent loss estimate. Operating revenue climbed 4.7% year-over-year to $2.2 billion and RASM rose 6.5%.
2. Rising Fuel Costs and Expenses
Average jet fuel prices reached $2.96 per gallon, up 15.2% year-over-year, driving total operating expenses up 6.5% to $2.46 billion. Operating expense per available seat mile increased 8.3%, outpacing revenue per ASM growth and putting pressure on margins.
3. Capacity Reductions and Operational Response
To contain costs, JetBlue reduced second-quarter capacity by about one point versus prior expectations and plans second-half cuts of at least two to three points. The carrier expects 30% to 40% fuel recapture in Q2 and full recapture by early 2027.
4. Outlook, Guidance and Liquidity
JetBlue forecasts Q2 RASM growth of 7% to 11%, with all capacity gains concentrated in Fort Lauderdale following a 5% RASM increase on 23% capacity growth in Q1. The airline ended the quarter with $2.4 billion of liquidity, executed $500 million in aircraft-backed financing and repaid $325 million of convertible notes.