Sam Boughedda

Investing.com — JetBlue Airways Corp (NASDAQ:) stock dipped in early Tuesday trading despite the company reporting a narrower loss and revenue beating forecasts.

An adjusted loss per share was 80cs for revenue of $1.74billion. Investing.com asked analysts to forecast a loss per share at 87c on revenues of $1.73 Billion.

In comparison to its forecast for a decline of 1% per year, the company reported that capacity fell by 0.3% over the past three years.

The company added that the first quarter results had been “characterized by an extremely strong demand acceleration,” and revenue was more than six percentage points higher than its January initial view.

American Airlines (NASDAQ;) and Delta (NYSE) both reported they expected to be back to profitability during the current quarter. This suggests that there is a recovery in post-pandemic travel.

The rising fuel price is facing the airline sector, however. JetBlue reported that in the first quarter, the realized fuel prices were $2.90/gallon. This is 41% higher than the $1.05.

To restore operational reliability, the airline will also reduce its capacity growth.

“These actions will create more resiliency in the operation, and set us up for a better May, and an even better June and strong summer peak,” stated Robin Hayes, JetBlue’s Chief Executive Officer.

JetBlue announced that for 2022 it will increase its capacity by between 0% to 5%, compared to 2019.

The company expects to see capacity increase between 0% to 3% for the second quarter. It also forecasts revenue growth between 11%-16% year-over-year. The April operational disruption could have a 4-point impact on revenue.

JetBlue stock fell by more than 7% after the report.