JetBlue Airways Corporation (NASDAQ:JBLU) shares fell 3% on Thursday morning after the airline raised its third-quarter 2026 revenue outlook while increasing its forecasts for operating and fuel costs.
JetBlue now expects revenue per available seat mile (RASM) to increase 17.0% to 20.0% year over year, compared with its previous forecast of 12.5% to 16.5%.
The airline also raised its cost outlook. Cost per available seat mile excluding fuel is expected to increase 6.0% to 8.0%, compared with its previous guidance of 2.5% to 4.5%.
JetBlue said weather events and air traffic control constraints caused increased operational disruption during July and August, particularly in the Northeast, where the airline has a significant concentration of its network. Severe airport-weather days across the National Airspace System increased by more than 40% compared with the average of the previous three summers, while JetBlue’s cancellations related to air traffic control issues nearly doubled.
JetBlue Raises Fuel Forecast and Reduces Capacity Outlook
JetBlue now expects fuel costs of $3.96 per gallon, up from its previous estimate of $3.49.
The airline reduced its capacity forecast, with available seat miles now expected to increase 1.5% to 3.5% year over year, compared with its earlier projection of 3.0% to 6.0%.
JetBlue said travel demand remained strong during the third quarter and that booking trends continued into September. The company said it had observed no meaningful signs of demand elasticity and described early fourth-quarter booking trends as encouraging.
Capital expenditure guidance was reduced to approximately $275 million from $300 million. JetBlue expects an effective tax rate of approximately 6% for both the third quarter and full-year 2026.
JetBlue Airways stock price
