JetBlue Airways reported a wider second-quarter loss on Tuesday, attributing the decline primarily to increased jet fuel costs. The New York-based airline posted a net loss of $247 million, or 66 cents per share, compared with a loss of $74 million, or 21 cents per share, during the same period last year. Analysts had expected a loss of 69 cents per share.

Despite the financial setback, JetBlue saw operating revenue climb 14.5% year-over-year to $2.7 billion, slightly exceeding analyst projections of $2.69 billion. The company credited stronger customer demand and higher ticket prices for mitigating about half of the impact from rising fuel expenses.

During its quarterly earnings call, JetBlue executives indicated the possibility of raising additional secured debt if fuel prices continue to stay high. The airline currently has borrowing capacity available from a $500 million aircraft-backed loan obtained in April. The move suggests the company is preparing to bolster its liquidity amid ongoing cost pressures.

Jet fuel prices have been a significant factor affecting airline financial performance globally in recent quarters, and JetBlue’s results reflect this broader trend. The carrier’s cautious approach to debt issuance signals a focus on preserving financial flexibility as it navigates the challenges of a fluctuating fuel market.

Overall, the quarter highlighted JetBlue’s balancing act between managing rising operational costs and maintaining passenger traffic and revenue growth. The airline’s ability to raise fares without considerably dampening demand appears to have softened the blow from surging fuel expenses, even as losses expanded compared to a year earlier.