JetBlue Airways on Monday raised its second-quarter revenue outlook, saying strong travel demand across all geographies was allowing the carrier to generate more revenue per seat even as fuel costs climbed above prior expectations. The updated guidance, contained in an operational refresh from the airline, signaled that consumer appetite for air travel remains robust heading into the peak summer season.
The airline said it now expects revenue per available seat mile — a standard industry metric measuring how much revenue a carrier generates for each seat flown one mile — to grow 9% to 12% in the second quarter, up from its prior forecast of 7% to 11%. JetBlue also narrowed its capacity growth guidance, telling investors that available seat miles would expand 2% to 4%, compared with a previous range of 1.5% to 4.5%.
“Demand for travel in the second quarter has remained strong and consistent with trends observed earlier in the year,” JetBlue said.
The airline flagged strong demand particularly for close-in travel and on routes previously operated by Spirit Airlines before the budget carrier’s shutdown earlier this year. The loss of Spirit’s capacity on those routes left remaining carriers, including JetBlue, to absorb passenger demand that might otherwise have flowed to the defunct airline.
JetBlue also updated its fuel cost expectations, saying it now anticipates second-quarter fuel prices of $4.26 to $4.36 per gallon, up from its previous guidance of $4.13 to $4.28. The airline said it expects to recapture at least 40% of the increased fuel costs during the quarter, indicating it planned to offset a portion of the higher expense through fares or fees.
The raised outlook comes as airlines broadly have grappled with elevated fuel costs in recent months. JetBlue in April increased its checked bag fees, citing rising fuel costs at the time. The carrier’s ability to sustain revenue growth while managing the capacity impact of higher fuel prices will be closely watched as the summer travel season begins.