JetBlue Airways on Tuesday reinstated its annual outlook, beat Street estimates and introduced a profit target for 2028 despite ongoing fuel headwinds due to the Middle East war, sending shares of the low-cost carrier up nearly 10%.
Stronger demand and higher fares helped it recover close to half of its additional fuel costs in the second quarter, in line with its peers. The carrier introduced a long-term profit target of at least $1 per share for 2028, adding that despite fuel costs, it remains on track to deliver $850 to $950 million in annual incremental EBIT by the end of 2027.
JetBlue recaptured 50% of its fuel costs during the second quarter, compared with previous expectations of 30% to 40%. Average airfare rose nearly 9%, boosting revenue per available seat mile, a proxy for pricing power, to 11%.