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JetBlue is the latest U.S. airline to slow growth due to rising fuel costs.
Speaking during the carrier’s second-quarter earnings call Tuesday, CEO Robin Hayes estimated that capacity will be up 5.7% in the fourth quarter, a two-point drop from earlier JetBlue guidance.
The airline’s fuel costs were up 51.1% in the quarter. Crude oil was trading at close to $69 per barrel early Tuesday afternoon, up 46.5% from a year earlier.
Last week, United made a slight reduction to its 2018 growth plans, citing fuel costs. The carrier now plans to expand between 4.5% and 5% this year rather than between 4.5% and 5.5%.
Delta also rolled back capacity guidance and now projects to grow 3% over the course of 2018 rather than 3% to 4%. Delta CEO Ed Bastian said the growth is coming entirely from larger aircraft and longer flights. Departures at Delta are down year-over-year.
Airlines define capacity as the number of seats they offer multiplied by the distance they fly.
Source: travelweekly.com
