Topline
Airline stocks tumbled Monday as the industry continues to feel pressure from increasing jet fuel prices due to the Iran war, with JetBlue falling as much as 9% earlier after revising its second quarter outlook.
JetBlue’s stock price fell on Monday, before slightly recovering.
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Key Facts
In a Securities and Exchange Commission filing on Monday, JetBlue raised its second quarter fuel cost guidance to $4.26-$4.36 per gallon—up from an expected $4.13-$4.28 listed in its previous guidance from April.
Jet fuel prices rose to about $142 per barrel in May, Reuters reported, up from $85-$90 per barrel before the U.S. and Israel began air strikes on Iran on Feb. 28.
JetBlue was down more than 5.1% to $5.18 a share as of around 3:15 p.m. EDT, recovering from a drop of more than 9% after markets opened.
Other airlines saw share prices drop—Delta Airlines was down about 1.3% around the same time, American fell about 1.8%, United tumbled 2.3%, and Alaska Airlines was down about 3%.
Contra
Despite the rise in fuel prices, JetBlue said travel demand was “strong and consistent,” with positive trends “across all cabins and geographies.” The updated filing also noted the company was seeing “overperformance” on routes previously served by rival Spirit Airlines, which shut down in May. The company said it expected to “recapture 40% or more of increased fuel costs” in its second quarter.
Key Background
JetBlue suspended its full-year guidance in April, and announced it would slow hiring and raise airfare.
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