01:00 PM EDT, 06/03/2024 (MT Newswires) -- JetBlue Airways ( JBLU ) updated its second-quarter guidance on Monday to now reflect a smaller year-over-year revenue decline at the midpoint than previously projected, as well as lower expenses.

The carrier is expecting revenue to decline by 6.5% to 9.5% on an annual basis in the quarter ending June 30. That compares with a decline of up to 10.5% in its previous forecast.

In the same quarter of 2023, JetBlue ( JBLU ) reported revenue of $2.61 billion. Analysts surveyed by Capital IQ are on average modeling revenue of $2.4 billion in the ongoing quarter.

Available seat miles is expected to dip by 2% to 4% compared with the 2% to 5% decline in JetBlue's ( JBLU ) prior forecast.

"The company continues to experience healthy overall demand trends, in-line with expectations," the carrier wrote in a Securities and Exchange Commission filing. "Better operational performance is driving solid cost execution in the second quarter, and is further supported by recent trends in jet fuel prices, which have declined over the quarter."

In April, JetBlue ( JBLU ) revised down its full-year revenue guidance to reflect an expected low-single digit drop compared with flat expectations previously, citing elevated industry capacity in its Latin region that represented 35% of the carrier's total available seat miles.

The company, which terminated its $3.8 billion proposed acquisition of Spirit Airlines (SAVE) in March amid regulatory challenges, is guiding for fuel price per gallon of $2.85 to $2.95, down from $2.98 to $3.13 previously.

Operating expense per available seat mile, known as CASM, excluding fuel is now seen rising 5% to 7% year over year compared with the airline's earlier view that it would be up 5.5% to 7.5%. JetBlue ( JBLU ) said it has maintained strong operational performance quarter-to-date with a completion factor of roughly 99%.