July 28 (Reuters) - U.S. carrier JetBlue reported a bigger second-quarter loss on Tuesday, hurt by a surge in fuel costs after the war in Iran curbed oil supplies.
The airline also introduced a long-term profit target of at least $1.00 per share for 2028, citing benefits from its strategic overhaul.
Shares of the company were up about 1% after reporting results.
Uncertainty around the Middle East conflict involving the U.S., Israel and Iran has made it increasingly difficult for airlines to accurately
forecast earnings and jet fuel costs that form roughly one-fourths of their operating expense.
Jet fuel retreated from its spring highs following a peace deal signed by Washington and Tehran in June. Fighting between the two nations resumed once more in July, pushing fuel prices higher. However, as they paused fighting over the weekend, oil prices hit a one-week low.
The volatility in energy markets has added billions to U.S. airlines' quarterly bills, upending margin-recovery plans for smaller airlines such as JetBlue that have limited financial flexibility to deal with the uncertainty.
JetBlue reported a bigger adjusted loss of 66 cents per share in the April-June quarter, wider than the 21 cents loss it reported the year before.
The airline's quarterly fuel costs were up nearly 81%, adding $407 million to its overall expenses. It paid an average of $4.23 per gallon of fuel in that period.
For the third quarter, JetBlue said it expects to pay $3.49 per gallon of jet fuel. It also reinstated its annual fuel cost forecast and now expects to pay $3.49 per gallon of fuel in 2026.
(Reporting by Nandan Mandayam in Bengaluru; Editing by Devika Syamnath)
