Shares of the airline fell 9% in morning trading.
The U.S.-Israeli attack on Iran closed the critical Strait, a vital route for nearly a fifth of global oil and gas supplies.
Jet fuel, which had averaged about $85 to $90 a barrel before the strikes in February, was hovering near $142 per barrel in the last week of May, according to the International Air Transport Association.
Fuel price volatility has prompted airlines across the globe to hike passenger fares and baggage fees to recover higher costs, as well as cut flight frequency and routes to limit fuel usage.
Higher fuel prices disproportionately pressure smaller carriers such as JetBlue, given their limited financial flexibility and heightened exposure to uncertainty.
JetBlue had suspended its full-year outlook in April and said it planned to slow hiring, cut capacity and hike fares.The airline now expects fuel to cost $4.26 to $4.36 per gallon in the second quarter, compared with an earlier forecast of between $4.13 and $4.28.
“However, this guide was underwritten using the May 22 Brent forward curve, which has since improved,” said Raymond James analyst Savanthi Syth.
JetBlue also said it expects to “recapture 40% or more of increased fuel costs in the quarter”, helped by consistent operational performance.
The airline raised its forecast for revenue growth per available seat mile, a proxy for pricing power, to a range of 9% to 12%, versus between 7% and 11% forecast earlier.
Rival American Airlines said last week it expects strong demand to cushion the hit from rising fuel costs.
JetBlue also reported “outperformance” in routes previously operated by Spirit Airlines after the distressed carrier shut down.
JetBlue is beginning to fill the void left by Spirit, particularly at Fort Lauderdale in Florida, Syth added.
“Although it remains early in the third quarter booking curve, we are encouraged current trends may carry forward,” JetBlue said in a regulatory filing.
