JetBlue Airways posted a net loss of $247 million in the second quarter of 2026, wider than the $74 million loss it recorded in the same period a year earlier, as a surge in fuel costs outpaced stronger revenue.
The airline beat Wall Street estimates and reinstated its full-year outlook as demand helped it recover more fuel costs than expected
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JetBlue Airways posted a net loss of $247 million in the second quarter of 2026, wider than the $74 million loss it recorded in the same period a year earlier, as a surge in fuel costs outpaced stronger revenue.
The New York-based carrier spent $911 million on jet fuel in the quarter, an increase of nearly 81% compared with the same period a year ago. JetBlue paid an average of $4.23 per gallon of jet fuel, up from $2.40 per gallon a year earlier. Despite the spike, the airline recaptured nearly 50% of its higher fuel costs during the quarter, exceeding its previous expectation of 30% to 40%, the company said.
The airline's total operating revenue climbed to $2.7 billion, a 14.5% gain from the year-earlier period. Revenue per available seat mile grew 10.9% year-over-year. The airline's adjusted loss came in at 66 cents per share. Analysts had expected a loss of 71 cents per share, according to Reuters.
JetBlue also reinstated its full-year 2026 outlook, which it had previously withheld. The company now expects full-year revenue per available seat mile growth of 10% to 12.5% year-over-year and projects paying $3.49 per gallon of jet fuel for the full year. It expects an adjusted operating margin of negative 2% to negative 5% for the year, the company said.
"Our second quarter results demonstrate the progress we're making on the levers within our control," Chief Financial Officer Ursula Hurley said in a statement.
JetBlue also introduced a long-term earnings target of at least $1.00 per share for 2028, premised on continued demand strength and an assumed average jet fuel price of $3.00 per gallon that year.
The results come after JetBlue reported a net loss of $319 million in the first quarter of 2026, wider than the $208 million loss in the same period a year earlier, and missed Wall Street estimates. At that time, the carrier said it projected fuel costs would rise to a range of $4.13 to $4.28 per gallon in the second quarter and flagged plans to cut capacity during off-peak periods. It expected to fully recapture fuel costs by early 2027.
JetBlue's transformation program, called JetForward, has generated $470 million in cumulative incremental earnings before interest and taxes through June 2026, the company said. The program remains on track to deliver $850 million to $950 million in annual incremental EBIT by the end of 2027, with benefits expected to reach approximately $1.2 billion in 2028.
Chief Executive Officer Joanna Geraghty said in a statement that strong customer demand and cost controls enabled the airline to recover fuel costs faster than anticipated.
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