The invention relates to a catalytic hydrocracker with two different catalyst beds within the reactor where each is loaded with a catalyst that has different hydrocracking properties. A first catalyst bed preferably cracks heavy oil more aggressively than the catalyst in the second bed. The catalytic hydrocracker includes further two recycle lines such that one directs unconverted oil through both hydrocracker beds and a bypass inlet is positioned between the first and second catalyst beds to admit unconverted oil to pass only through the second less aggressive hydrocracker catalyst bed. When gasoline prices favor the production of gasoline, less unconverted oil is recycled through the bypass therefore making more gasoline, but when prices favor the production of j et and diesel, more recycle is directed through the bypass recycle thus making less gasoline and more diesel and jet fuel.