JetBlue Airways (NASDAQ:JBLU) projected a smaller decline in second-quarter revenue than previously anticipated due to strong travel demand, boosting its shares by 5% intra-day today.

While major U.S. airlines expect record passenger numbers for the summer, uneven demand on certain routes has caused overcapacity and impacted pricing power for some carriers.

JetBlue now predicts its second-quarter revenue to decrease between 6.5% and 9.5%, an improvement from its earlier forecast of a 6.5% to 10.5% decline.

The airline attributed this revision to better operational performance and recent trends in jet fuel prices, which have decreased over the quarter.

Despite higher operating costs due to ongoing inspections of Pratt & Whitney's Geared Turbofan (GTF) engines leading to the grounding of several aircraft, JetBlue has been optimizing its operations by cutting unprofitable routes and reallocating resources to more lucrative markets.

Additionally, JetBlue revised its fuel cost forecast, now expecting to spend $2.85 to $2.95 per gallon, down from its previous estimate of $2.98 to $3.13 per gallon.