By Doyinsola Oladipo and Nandan Mandayam
July 28 (Reuters) – JetBlue Airways on Tuesday reinstated its annual outlook for revenue per available seat mile, a proxy for pricing power, as stronger demand and higher fares helped it recover more of its fuel costs than previously anticipated in the second quarter.
Most U.S. carriers recovered close to half of the additional fuel costs stemming from the Middle East war in the second quarter, but their visibility on profits remains mixed. JetBlue’s net loss widened year-over-year as airlines have struggled to completely pass on volatile fuel costs to travelers despite healthy demand.
The New York-based airline also introduced a long-term profit target of at least $1 per share for 2028, adding that despite fuel headwinds, the carrier remains on track to deliver $850 to $950 million in annual incremental EBIT by the end of 2027.
Shares of the low-cost carrier were down 1.5% in early trading.
“Our second-quarter results demonstrate the progress we’re making on the levers within our control,” said Ursula Hurley, JetBlue’s chief financial officer. The carrier’s net loss widened to $247 million during the second quarter, compared with $74 million during the same period in 2025.
JetBlue recaptured 50% of its fuel costs during the second quarter, compared with previous expectations of 30% to 40%. Average airfare rose nearly 9%, boosting seat revenue 11%.
Jet fuel retreated from its spring highs following a peace deal signed by Washington and Tehran in June. However, fighting between the two nations resumed once more in July, pushing fuel prices higher.
The volatility in energy markets has added billions to U.S. airlines’ quarterly bills, upending margin-recovery plans for smaller airlines such as JetBlue that have limited financial flexibility to deal with the uncertainty.
During the quarter, JetBlue’s fuel bill ballooned by nearly 81%, or roughly $407 million. It paid an average of $4.23 per gallon of fuel during that period. For the full year, JetBlue said it expects to pay $3.49 per gallon of jet fuel.
Raymond James equity analyst Savanthi Syth called JetBlue’s 2028 profit target “ambitious” given that it requires increasing pretax profit by more than $1.3 billion versus 2026, with only about $400 million of that gain coming from lower fuel costs. The carrier’s earnings per share beat this quarter was helped by the timing of expenses, Syth added.
JetBlue reported an adjusted loss of 66 cents per share in the April-June quarter, while analysts expected a loss of 71 cents per share, according to data compiled by LSEG. Total revenue rose 14.5% to $2.69 billion during the quarter, compared with analyst expectations of $2.68 billion.
(Reporting by Nandan Mandayam in Bengaluru and Doyinsola Oladipo in New York; Editing by Devika Syamnath)
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