JetBlue Airways Corporation (NASDAQ:JBLU) has revised its financial outlook for the first quarter of 2026, pointing to operational disruptions caused by winter storms as well as higher fuel costs, which partially offset stronger-than-expected travel demand.
The airline said two major winter weather events in January and February disrupted operations and reduced capacity compared with earlier forecasts. As a result, year-over-year capacity came in about 3.5 percentage points lower than initially expected. The disruptions also pushed up year-over-year cost per available seat mile excluding fuel by a similar margin.
JetBlue now expects available seat miles to fall between 2.0% and 1.0% year over year in the first quarter, compared with its previous forecast of a 0.5% to 3.5% increase.
Operating revenue per available seat mile is now projected to grow between 5.0% and 7.0% year over year, an improvement from the earlier guidance range of 0.0% to 4.0%.
Meanwhile, cost per available seat mile excluding fuel is expected to rise between 6.5% and 7.5% year over year, exceeding the prior forecast of 3.5% to 5.5%.
The company also revised its fuel price outlook, now expecting jet fuel to average between $3.01 and $3.06 per gallon, significantly higher than the previously projected range of $2.27 to $2.42.
JetBlue noted that the weather-related disruptions provided roughly a two-percentage-point benefit to unit revenue during the quarter. Demand strengthened across its network during both peak and off-peak travel periods, with improvements recorded in both premium and core cabin offerings.
Capital expenditures for the quarter are now expected to total about $175 million, lower than the earlier estimate of $200 million. The company’s first quarter concludes on March 31, 2026.