JetBlue flags higher fuel costs

US carrier JetBlue raised its second-quarter fuel costs forecast on Monday as shipping disruptions in the Strait of Hormuz entered a fourth month, increasing pressure on the global aviation industry due to rising jet fuel prices, reports Reuters.
The US-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 US and Israeli strikes on Iran 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 like JetBlue, given their limited financial flexibility and heightened vulnerability 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 to an earlier forecast between $4.13 and $4.28.