JetBlue's average fare reached a record $138 earlier this year, Chief Executive Officer David Barger said Thursday on a webcast of the airline's annual meeting at its New York headquarters. Still, with prices lower than most competitors', JetBlue can ''steal market share,'' he said.

The outlook for oil remaining at or near its highest ever underscores the strain on JetBlue and other carriers.

Crude has almost doubled in the past year, which Barger said was ''unprecedented.''

''Hope is not a plan. We're not planning on the cost of oil moving down again, and we have to plan accordingly,'' Barger said. ''Our financial strength, the cash we have in the bank, our ability to discipline our growth rate'' will help JetBlue cope.

JetBlue said last month its capacity will shrink for the first time ever in the fourth quarter as the airline sells six planes to lower costs. It also pared 2008 expansion plans for a third time, cutting its full-year growth target to 5 percent.