JetBlue Announces First Quarter 2026 Results

JetBlue Airways Corporation (NASDAQ: JBLU) reported its financial results for the first quarter of 2026.

«We delivered a strong first quarter, with revenue performance exceeding our expectations, driven by resilient consumer demand and an appreciation for JetBlue’s industry-leading customer offering,» said Joanna Geraghty, JetBlue’s chief executive officer. «Demand trends strengthened as the quarter progressed, supporting improved yields, even in the face of a challenging operational environment.»

«While the macro environment, particularly fuel, has become more volatile, we are taking decisive actions to manage what is within our control, including adjusting capacity, optimizing revenue, and maintaining disciplined cost control. At the same time, we are seeing clear evidence that JetForward is on track and working, and we remain confident it is the right plan to transform our business and get us closer to our financial priorities. In the near term, we are focused on mitigating the impact of elevated fuel prices, as JetForward continues to position us to restore sustained profitability over the long term.»

JetBlue Continues to Expand and Strengthen Our #1 Position in Fort Lauderdale (FLL)

• FLL continued to exceed expectations in 1Q26 and remains a key driver of JetBlue’s network and revenue strategy.
• Delivered strong performance in FLL, with RASM up 5% year-over-year on 23% capacity growth.
• Expanded service with new routes and increased frequencies across high-demand markets.

Taking Action to Mitigate Increased Fuel Costs

• Expect 30% to 40% fuel recapture in the second quarter, and 100% by early 2027.
• Reduced second quarter capacity by nearly one point versus close-in expectations and reducing second half by at least two to three points versus 2026 prior expectations, with reductions focused in off-peak travel periods.
• Implemented additional cost savings beyond capacity reductions and continue to evaluate opportunities to offset increased input costs, including continued focus on fuel optimization efforts.

Proactively Strengthening Liquidity and Preserving Financial Flexibility

• Executed $500 million of committed aircraft-backed financing, with the ability to upsize by an additional $250 million.
• Repaid remaining $325 million of 2021 convertible notes during the second quarter.
• Ended the first quarter with $2.4 billion in liquidity (26% of trailing twelve month revenue versus target of 17 to 20%), excluding undrawn $600 million revolving credit facility, and continue to maintain over $6.0 billion in unencumbered assets.

First Quarter 2026 Financial Results

• First quarter 2026 system capacity decreased by 1.7% year-over-year, within our revised guidance ⁽¹⁾ range of down 2.0% to down 1.0%.
• Operating revenue of $2.2 billion for the first quarter of 2026, an increase of 4.7% year-over-year.
• Operating revenue per available seat mile («RASM») increased 6.5% year-over-year, near the better end of our revised guidance range.
• Operating expense per available seat mile («CASM») for the first quarter of 2026 increased 8.3% year-over-year.
• Operating expense per available seat mile, excluding fuel, other non-airline operating expenses, and special items («CASM ex-Fuel») ⁽⁴⁾ for the first quarter of 2026 increased 6.6% year-over-year, including ~four points of pressure driven by operational disruptions.
• Average fuel price in the first quarter of 2026 of $2.96 per gallon, $0.39 higher year-over-year, or 15.2%.
• Capital expenditures, including predelivery deposits, in the first quarter totaled $141 million versus our revised guidance of ~$175 million, driven by the timing of deliveries.

First Quarter 2026 Commercial and Financial Highlights

• Executed throughout the quarter despite disruptions (~four point capacity impact), delivering unit revenue performance above high end of initial guidance range and near better end of revised guidance range.
• Premium cabin performance continued to outperform, with year-over-year RASM approximately nine points higher than core in the first quarter. In addition, year-over-year core RASM was strongly positive for the quarter.
• Loyalty cash remuneration grew 19% year-over-year, supported by double-digit co-brand spend growth, a 45% increase in card acquisitions, and record levels of TrueBlue ^® active members and attach rates.
• Expanded TrueBlue ^® value with new offerings including point redemption for seats and other ancillaries, Points On Repeat, and Family Tiles.
• Advanced Blue Sky collaboration with United Airlines, with customers now able to book flights on either airline using cash, points, or miles, giving travelers more freedom to shop and pay the way they prefer while accessing the strengths of either network.
• Recognized by The Points Guy with a TPG Award for Best U.S. Economy Cabin, including for transatlantic service. This is the sixth time JetBlue has won the coveted award and marks our ninth TPG Award since 2018.
• Continued progress across JetForward’s four priority moves, on track for $310 million incremental EBIT ⁽²⁾ in 2026.

Outlook

«As we look ahead, we are seeing continued strength across the booking curve, with momentum carrying into the second quarter supporting our unit revenue outlook,» said Marty St. George, JetBlue’s president. «We are particularly pleased with the revenue trends and customer response we are seeing in Fort Lauderdale. All of our second quarter capacity growth is driven by Fort Lauderdale, and we plan to continue building upon our leadership position in this key focus city.»

«The operating environment remains volatile, particularly with fuel prices expected to remain elevated in the near term, and we are taking meaningful action to mitigate the impact,» said Ursula Hurley, JetBlue’s chief financial officer. «In addition to our revenue efforts, we are reducing capacity during off-peak periods and driving additional cost savings throughout the business.»