JetBlue (JBLU) Stock Falls After Earnings Miss and Fuel Cost Warning

TLDR

• JetBlue posted a Q1 adjusted loss of 86 cents per share, worse than the 73-cent loss analysts expected
• Revenue rose 4.7% to $2.24 billion, in line with estimates
• Average fuel costs jumped 15.2% to $2.96 per gallon in Q1, with Q2 prices expected to hit $4.13–$4.28 per gallon
• JetBlue is cutting capacity in Q2 and the second half of 2026 to offset rising fuel costs
• The stock was down around 2.4% in premarket trading at $4.82

JetBlue Airways reported a wider-than-expected loss for the first quarter of 2026 on Tuesday, as surging jet fuel costs weighed on the low-cost carrier’s bottom line.

The airline posted a net loss of $319 million, or 86 cents per share, for the quarter ended March 31. That compares to a loss of $208 million, or 59 cents per share, in the same period a year ago. Analysts polled by FactSet had been expecting a loss of around 71 to 73 cents per share.

Revenue came in at $2.24 billion, up 4.7% year over year and in line with Wall Street estimates.

The stock slipped 2.4% in premarket trading to $4.82. It had already fallen 6.2% on Monday ahead of the report.

JetBlue Airways Corporation, JBLU

Average fuel costs were a key pressure point. JetBlue said prices jumped 15.2% to $2.96 per gallon in Q1. That number is set to climb further — the company expects fuel to cost between $4.13 and $4.28 per gallon in the second quarter.

To cope, JetBlue is pulling back on capacity. The airline cut available seat miles by 1.7% in Q1 and has reduced second-quarter capacity by nearly one percentage point versus earlier plans.

Capacity Cuts Coming in H2

The cutbacks don’t stop there. JetBlue said it plans to reduce capacity in the second half of 2026 by at least 2 to 3 percentage points compared to prior expectations. The cuts will target off-peak travel periods.

Management said it expects to recapture 30% to 40% of the additional fuel costs in Q2, with full recovery expected by early next year.

Revenue per available seat mile is expected to grow between 7% and 11% in Q2, following a 6.5% increase in Q1.

Fort Lauderdale is also doing some heavy lifting. JetBlue executives said the carrier’s Florida hub is driving strength for the company and will account for all of the expected second-quarter capacity growth.

Fuel Costs Hit Low-Cost Carriers Harder

For carriers like JetBlue, high fuel prices are a tougher problem to solve than for full-service rivals. United Airlines and Delta Air Lines have been able to pass some of those costs onto passengers through higher fares. JetBlue’s low-cost model makes that a harder lever to pull.

Jet fuel prices have been rising partly due to the ongoing conflict in Iran, which has affected global oil markets.

JetBlue stock is up about 9% year-to-date and had gained 17% over the past month as airline stocks broadly recovered. Tuesday’s premarket drop to $4.82 suggests that recovery may be pausing for now.

The company projects available seat miles to increase 1.5% to 4.5% in Q2, with Fort Lauderdale operations driving that growth.

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