JetBlue Airways Corp.’s sales performance for this quarter will be somewhat better than expected as the carrier works to improve operations and capitalize on “healthy overall demand trends.”

Revenue will decline 6.5% to 9.5% from a year ago, compared with an earlier outlook for as much as a 10.5% drop, the airline said Monday in a regulatory filing. Analysts were expecting a decline of 8.4%.

The revised outlook is an encouraging sign for JetBlue, which is battling growing competition in Florida and in Latin America that has driven down fares. It’s also trying to bolster flight operations and manage operating costs after its planned acquisition of Spirit Airlines Inc. was blocked by a federal court. 

JetBlue’s shares rose 2% as of 8:09 a.m. before regular trading in New York.

Alongside the improving revenue outlook, the carrier also reduced its expense expectations for the quarter ending June 30. Costs for each seat flown a mile, a measure of efficiency, will rise no more than 7%, down half a percentage point from an earlier projection. Jet fuel, one of the two largest costs for airlines, will be lower than expected as well.

JetBlue will trim capacity as much as 4% in the period, while earlier guidance called for a decline of up to 5%.