0001158463-26-000060
SEC filingJetBlue reported Q1 2026 revenue of $2.2 billion, RASM growth of 6.5%, and provided Q2 guidance with RASM up 7-11% and fuel price $4.13-$4.28 per gallon.
JetBlue's first quarter 2026 results demonstrated resilient demand and solid execution despite a challenging operational environment. Revenue reached $2.2 billion, up 4.7% year-over-year, driven by a 6.5% increase in RASM, which came in near the better end of revised guidance. The company noted that demand strengthened as the quarter progressed, supporting improved yields. However, operating expenses rose 8.3% on a CASM basis, with CASM ex-fuel up 6.6%, including approximately four points of pressure from operational disruptions. Fuel costs were a significant headwind, with average fuel price of $2.96 per gallon, up 15.2% year-over-year and 26% above initial guidance midpoint.
Management highlighted several strategic actions to mitigate elevated fuel costs. They expect 30-40% fuel recapture in the second quarter through yield optimization, targeting 100% by early 2027. Capacity is being reduced: second quarter capacity trimmed by nearly one point versus close-in expectations, and second half capacity reduced by at least two to three points versus prior expectations, with reductions focused on off-peak periods. Additionally, the company is implementing incremental cost savings beyond capacity reductions and continues to evaluate opportunities to offset higher input costs.
Liquidity remains strong at $2.4 billion (26% of trailing twelve-month revenue), excluding a $600 million undrawn revolving credit facility, and the company maintains over $6.0 billion in unencumbered assets. JetBlue also executed $500 million of committed aircraft-backed financing with an option to upsize by $250 million, and repaid the remaining $325 million of 2021 convertible notes during the second quarter.
Looking ahead, JetBlue provided second quarter 2026 guidance: ASMs up 1.5% to 4.5% year-over-year, RASM up 7.0% to 11.0%, CASM ex-fuel up 3.0% to 5.0%, and fuel price per gallon of $4.13 to $4.28. Full-year capital expenditures are expected to be approximately $800 million, down from prior expectations of ~$900 million. The JetForward initiatives remain on track to deliver $310 million in incremental EBIT in 2026, with the Blue Sky collaboration now live and domestic first class expected in the second half of 2026. The company's goal remains to target positive free cash flow by end of 2027, highly dependent on moderation of fuel prices.