TLDRThe airline’s Q1 adjusted loss reached 86 cents per share, surpassing the anticipated 73-cent deficitTotal revenue climbed 4.7% to reach $2.24 billion, matching analyst forecastsFuel expenses per gallon surged 15.2% to $2.96 in Q1, with projections of $4.13–$4.28 per gallon for Q2The carrier is implementing capacity reductions for Q2 and late 2026 to combat escalating fuel expensesShares declined approximately 2.4% during premarket hours to $4.82JetBlue Airways unveiled a steeper-than-anticipated first-quarter loss for 2026 on Tuesday, with skyrocketing jet fuel expenses putting significant pressure on the budget carrier’s financial performance.JETBLUE AIRWAYS $JBLU EARNINGS ARE OUT! EPS: -$0.87 | Est. -$0.73 REV: $2.24B | Est. $2.24BIMPLIED MOVE TODAY: ±9.66%!! pic.twitter.com/316Z13l7fk— Schaeffer's Investment Research (@schaeffers) April 28, 2026The carrier recorded a net deficit of $319 million, translating to 86 cents per share, during the three-month period ending March 31. This represents a deterioration from the prior year’s loss of $208 million, or 59 cents per share. Market analysts surveyed by FactSet had projected losses in the range of 71 to 73 cents per share.Total revenue reached $2.24 billion, reflecting a 4.7% year-over-year increase and aligning with Street expectations.Shares retreated 2.4% in premarket activity to $4.82. The stock had already experienced a 6.2% decline on Monday before the earnings announcement.JetBlue Airways Corporation, JBLUFuel expenses emerged as the primary challenge. The airline revealed that per-gallon prices surged 15.2% to $2.96 during Q1. The situation is projected to worsen — management anticipates fuel costs ranging from $4.13 to $4.28 per gallon throughout the second quarter.In response, the carrier is implementing operational cutbacks. Available seat miles decreased by 1.7% in Q1, and the airline has trimmed second-quarter capacity by nearly one percentage point from initial projections.Capacity Cuts Coming in H2The reductions extend beyond the near term. JetBlue announced plans to slash capacity during the latter half of 2026 by a minimum of 2 to 3 percentage points relative to previous guidance. These adjustments will focus on periods with lower travel demand.Executives indicated they anticipate recouping 30% to 40% of the incremental fuel expenses in Q2, with complete recovery projected by early 2027.Despite the financial setbacks, several positive indicators emerged. Customer demand remained resilient throughout the quarter, with CEO Joanna Geraghty highlighting that performance “strengthened as the quarter progressed, supporting improved yields.”Revenue per available seat mile is forecast to expand between 7% and 11% in Q2, after posting a 6.5% gain in Q1.The Fort Lauderdale operation is proving particularly valuable. Company leadership emphasized that the Florida hub is generating significant momentum and will represent the entirety of anticipated second-quarter capacity expansion.Fuel Costs Hit Low-Cost Carriers HarderFor budget airlines like JetBlue, elevated fuel prices present a more complex challenge than for legacy carriers. United Airlines and Delta Air Lines have successfully transferred portions of these expenses to customers through fare increases. JetBlue’s value-oriented business model limits the effectiveness of such strategies.Jet fuel prices have climbed partially due to the continuing Iranian conflict, which has disrupted global petroleum markets.JetBlue shares have appreciated roughly 9% since the beginning of the year and had climbed 17% during the preceding month as airline equities experienced broad-based gains. Tuesday’s premarket retreat to $4.82 indicates that recovery momentum may be stalling temporarily.Management forecasts available seat miles will grow between 1.5% and 4.5% in Q2, with Fort Lauderdale driving that expansion.The post JetBlue (JBLU) Stock Drops as Fuel Costs Soar and Q1 Losses Deepen appeared first on Blockonomi.