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How the jetpack works
The Jetpack uses energy, which is the blue bar right below the health bar.
After you jump, keep holding the spacebar to activate the Jetpack. You can upgrade your energy to allow for longer and higher flights around the Far Far Range.
Also, if upgraded enough, it will allow you to skip over the Slime Gates and into the different area. This is not recommended as you might get stuck and have to Emergency Return to your home, losing all items in the process.
As of Version 0.3.5b, you can have up to 250 Energy. This will allow about 10-15 seconds of flight before you exhaust your energy supply.