Mitochondria use the blood sugar (glucose) to produce the ATP in the Krebs or Citric Acid Cycle.
Ketones are a better fuel than glucose in the Krebs Cycle producing ATP as they enter the production process later resulting in lower CO2 production. Thus your body maintains better metabolic flexibility.
This is one reason that respiration function improves in ketosis.
Warning: While ketosis can be a natural part of the body’s metabolic response to low carbohydrate intake, excessive ketosis, especially in individuals with diabetes, can lead to ketoacidosis, a dangerous condition where the blood becomes too acidic.
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