U.S. carrier JetBlue raised its second-quarter fuel costs forecast on Monday as the global aviation industry grapples with rising jet fuel prices amid disruptions from the closure of the Strait of Hormuz.
The airline now expects fuel to cost $4.26 to $4.36 per gallon in the second quarter, compared to an earlier forecast between $4.13 and $4.28.
However, JetBlue said it expects to “recapture 40 per cent or more of increased fuel costs in the quarter,” helped by consistent operational performance.
The airline raised its forecast for revenue growth per available seat mile to between 9 per cent and 12 per cent, versus the 7 per cent to 11 per cent range forecast earlier.
It has also reported “outperformance” in routes previously operated by Spirit Airlines after the distressed carrier shut down last month.
“Although it remains early in the third quarter booking curve, we are encouraged current trends may carry-forward,” JetBlue said in a regulatory filing.
(Reporting by Aishwarya Jain in Bengaluru; Editing by Sriraj Kalluvila and Pooja Desai)
