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JetBlue Plans 30-40% "Fuel Recapture" Fare Hikes, Capacity Cuts To Cover Rising Costs

Thanks to the war in Iran, JetBlue Airlines is passing the cost along to us - announcing during Q1 earnings on Tuesday that while the airline had strong revenue performance, prices are going up due to rising fuel costs. 

A JetBlue Embraer 190 taxis on the tarmac at Ronald Reagan Washington National Airport in Arlington, Va., on June 29, 2021. Daniel Slim/AFP via Getty Images

"While the macro environment, particularly fuel, has become more volatile, we are taking decisive actions to manage what is within our control, including adjusting capacity, optimizing revenue, and maintaining disciplined cost control," said CEO Joanna Geraghty. 

"At the same time, we are seeing clear evidence that JetForward is on track and working, and we remain confident it is the right plan to transform our business and get us closer to our financial priorities."

As the Epoch Times notes further, JetForward is the airline’s turnaround strategy introduced in 2024, concentrating flights between the Northeast and leisure destinations such as Florida and the Caribbean.

This announcement follows last month’s notice that the airline would increase checked baggage fees by at least $10.

Going forward, JetBlue named specific actions it will take to deal with increased fuel costs, including 30 percent to 40 percent “fuel recapture” pricing during the second quarter, rising to 100 percent by early 2027. Using this strategy, the airline plans to offset the escalating costs by recovering those expenses through higher ticket prices, fees, and other adjustments.

The airline also intends to cut its flight capacity, with the reductions focused on off-peak travel periods, and implement additional cost-saving measures.

It revealed that the average fuel price during the first quarter was $2.96 per gallon—an increase of $0.39 per gallon year over year, or a 15.2 percent increase. Its first quarter 2026 system capacity also decreased by 1.7 percent year over year.

Still, the company’s operating revenue increased by 4.7 percent year over year to $2.2 billion during the first quarter, while its operating revenue per available seat mile grew 6.5 percent year over year.

The airline’s operating expense per available seat mile also increased during the first quarter by 8.3 percent year over year.

As a result, the company reported a net loss of $319 million, or $0.86 per share, for the quarter, compared with a loss of $208 million, or $0.59 per share, in the first quarter of 2025.

Some positive highlights of the first quarter include $500 million in committed aircraft financing, with the option of increasing that by an additional $250 million, and the repayment of $325 million of 2021 convertible notes. JetBlue ended the first quarter with $2.4 billion in liquidity.

“As we look ahead, we are seeing continued strength across the booking curve, with momentum carrying into the second quarter supporting our unit revenue outlook,” JetBlue’s president, Marty St. George, said in the report.

Tyler Durden Wed, 04/29/2026 - 09:50

RKO is often viewed as the forgotten child of Hollywood, despite being the studio behind some of this industry’s most celebrated films like “Citizen Kane,” “King Kong” and “The Hunchback of Notre Dame,” while employing Golden Era luminaries Cary Grant, Katharine Hepburn, Fred Astaire and Ginger Rogers.

There's still bad blood between industry giants Barry Diller and Irving Azoff, 15 years after Azoff, 78, pushed Diller, 84, out of Live Nation.

Every once in a while, even the richest man in the world can use a little help from his friends.

When Paramount's "Legend of Aang" leaked online this month, it may have caused more than just a headache for the studio. The film's existence on digital piracy sites may have, unwittingly, helped to fund more serious crimes including drug trafficking and human smuggling.

Dr. Amy Fritz, another expert witness testifying for the defense, described how Horner's justification for abducting Strand after she saw him snorting cocaine reflected his "weak theory of mind."

Core Durables Goods Surge For 12th Straight Month, Push Bond Yield Higher

After a recent string of 'soft' survey data, this morning we get some 'hard' data and it was far stronger than expected.

Preliminary headline durable goods orders for March rose 0.8% MoM (better than the 0.5% MoM exp), and the first increase after a three month decline to start the year (which was the first 3-month decline since Nov 2019).

The increase took place despite continued weakness in aircraft orders manifesting as a 21.1% drop in nondefense aircraft and parts in March. 

Meanwhile, core durable goods orders (prelim for March ) rose even more, up by 0.9% MoM (and stronger than the 0.4% expected.

That was 12 straight months of gains, pulling core orders up 7.62% YoY - the most since July 2022.

Bookings for non-defense capital goods orders excluding aircraft, a proxy for investment in equipment, surged by 3.3% MoM after an upward revised 1.6% increase a month earlier.

Finally, shipments figures (which plug into GDP) were also comfortably stronger than expected (+1.2% in March versus +0.6% forecast), which suggests upside risks to Q1 forecasts.

It remains to be seen, however, how the war impacted demand for capital goods. 

Bond yields rose after the better-than-expected housing and capital goods data. The war is an ongoing risk that can belatedly sour hard economic data, but soft data is more up to date. On that front, we have yet to see the manufacturing ISM turn down. As Bloomberg's Simon White notes (in the chart below) the ISM leads durable goods new orders by about three months.

Meanwhile, as reported earlier, housing data for March also held up well, largely thanks to housing starts, driven by one-unit structures, even as multi-unit ones fall. Building permits, on the other hand, were ugly, but that is a very forward looking leading indicator, and was likely driven by the spike in rates. 

The US economy is overall in remarkably good shape given the age of the cycle. That should keep yields supported. However, the longer energy prices remain elevated, that will become more in question.

Tyler Durden Wed, 04/29/2026 - 09:43

Madison Square Garden's Celebrity Row was stacked for Game 5 of the Knicks-Hawks first-round playoff series Tuesday night.

"She was grabbing his face and, like, really heavily kissing him."

O-I Glass Plunges As Gulf Energy Shock Hits Earnings Outlook

Glass bottle and jar company O-I Glass plunged the most in premarket trading in more than six years after it slashed its full-year adjusted EPS outlook, blaming higher energy costs tied to the Gulf-related energy shock.

The major glass-container manufacturer, producing bottles and jars for the beer, wine, spirits, beverage, and food-packaging markets, now expects adjusted EPS of $1.00 to $1.50, down sharply from its prior forecast of $1.65 to $1.90 and well below the $1.67 Bloomberg Consensus estimate. 

Slide 8 detailed O-I Glass' Full Year 2026 Outlook impacted by the energy shock in the Middle East:

The chart on the right is O-I Glass reassuring investors that it has hedged or mitigated a large portion of its European natural gas exposure. It says 75% to 80% of its 2026 year-to-go EU natural gas exposure is covered at rates better than current index prices, and more than 50% is already mitigated for 2027.

First-quarter results were also weak (courtesy of Bloomberg):

• Adjusted EPS 5c vs. 40c y/y, estimate 11c

• Net sales $1.54 billion, -1.7% y/y, estimate $1.47 billion

• Americas net sales $871 million, -0.2% y/y, estimate $826.3 million

• Europe net sales $655 million, -1.8% y/y

• Americas oper. profit $142 million, +0.7% y/y

• Europe operating profit $0 vs. $68 million y/y

From early February through Tuesday’s close, O-I Glass shares had already fallen roughly 40% as investors priced in the Gulf energy shock now working its way through the company’s cost structure. Shares are down another roughly 18% in premarket trading. If losses hold, it would mark the stock’s largest one-day drop since March 9, 2020. 

O-I Glass' deteriorating outlook highlights how quickly the energy shock spread worldwide (read Goldman). 

Tyler Durden Wed, 04/29/2026 - 09:35

The Airbnb host was found with "multiple stab wounds all over her body [and] a large silver knife ... protruding from the side of her neck.”

The two male leads of Apple TV’s drama series defend their characters’ toxic behaviors.

The Dodgers' manager isn’t certain if Ohtani would let him know if he’s displeased with how he is being used.

Cooke was disheartened that his then-wife was ignoring his texts.

Cooke was disheartened that his then-wife was ignoring his texts.

King Charles and Queen Camilla are spending the third day of their historic state visit celebrating 250 years of American independence in New York City, where they will meet with President Trump and the First Lady Melania Trump to participate in a 9/11 Memorial ceremony, attend a community event in Harlem, a business event at...

The former publicist also cast doubt on her "Summer House" co-stars' romance timeline, saying, "There is a difference between emotional and physical."

The former publicist also cast doubt on her "Summer House" co-stars' romance timeline, saying, "There is a difference between emotional and physical."

Beating California gave USC its eighth national championship in the sport and first under third-year coach Casey Moon.

Housing Starts Surge To Highest Since 2024 As Permits Unexpectedly Crater

With mortgage rates still relatively low, despite a recent jump in interest rates, and a top-down push for affordability, Housing Starts for March soared while the more forward-looking Building Permits disappointed, unexpectedly plunged.

Housing starts soared 10.8% MoM in March (far more than the -0.4% expected drop) while Permits plunged 10.8% MoM (and worse than the -0.4% decline expected)...

This pushed the SAAR totals for Starts to 1.502 million, far above the 1.390 million expected, and the highest since Dec 2024, but Building Permits fell to their lowest since Aug 2025

Under the hood, Single-Family Starts jumped 9.7%, the most since Feb 2025, and Multi-Family Starts soared 9.6% MoM, while Permits did a mirror image, plunging 23.5% MoM (biggest drop since June 2023) and Single-Family permits plunged 3.8%

The lowest mortgage rate since Aug 2022 (aside for the modest Iran war jump) likely helped spark homebuilder appetite to start building, even if it did precisely the reverse with permits. 

Overall, the report was a mixed bag overall, and tough to project given the impact of surging oil which translated into even higher yields on the mortgage rates for the foreseeable future. 

Tyler Durden Wed, 04/29/2026 - 09:09