JetBlue Airways reported a net loss of $319 million in the first quarter of 2026, wider than the $208 million loss it posted in the same period a year earlier. According to Barron’s, Wall Street had forecast an adjusted loss of 73 cents per share, making the actual result of 86 cents a significant error. Shares had already lost 6.2% the day before the report and extended those declines by another 1.5% in premarket trading on April 28.
Total operating income reached $2.2 billion during the quarter, an increase of 4.7% year-over-year. Revenue per available seat mile increased 6.5% year over year, the company said, putting it at the better end of its revised guidance range.
Fuel costs were the main drag on results. At $2.96 a gallon on average, jet fuel cost the airline 15.2% more than the same period a year ago, and the company projects that figure will rise even further, to a range of $4.13 to $4.28 a gallon in the second quarter.
Total operating expenses increased 6.5% year over year to $2.46 billion. Operating expenses per available seat mile increased 8.3%, outpacing the 6.5% growth in revenue per available seat mile.
In response to high fuel costs, JetBlue said it is cutting capacity during off-peak periods. The airline reduced second-quarter capacity by about one point versus initial expectations and said it would reduce second-half capacity by at least two to three points versus earlier expectations. It expects a 30% to 40% fuel recovery in the second quarter and a full recovery by early 2027.
“While the macroeconomic environment, particularly fuel, has become more volatile, we are taking decisive action to manage what is within our control,” CEO Joanna Geraghty said in a statement.
Looking ahead, JetBlue projected second-quarter revenue per available seat mile growth of 7% to 11% year over year. The company said all of its capacity growth in the second quarter is concentrated in Fort Lauderdale, where revenue per available seat mile in the first quarter increased 5% with capacity growth of 23%.
JetBlue ended the first quarter with $2.4 billion in liquidity, representing 26% of trailing-twelve-month revenue. The company also executed $500 million in committed aircraft-backed financing, with the option to increase it by an additional $250 million, and repaid $325 million in convertible notes during the second quarter.