JetBlue plans for slow, volatile recovery

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JetBlue reported a Q2 net loss of $320 million.
JetBlue reported a Q2 net loss of $320 million.

JetBlue’s second-quarter revenue declined 90% year over year to $215 million, and executives project a gradual but uneven recovery in revenue throughout the rest of the year.

Like other U.S. carriers, JetBlue saw bookings and traffic improve in May and June, but a growth in Covid-19 cases and quarantine restrictions across the U.S. beginning in late June stunted that growth, JetBlue president and COO Joanna Geraghty said Tuesday during an earnings call. 

JetBlue expects to see revenue down 80% year over year in the third quarter and 60% to 70% in the fourth quarter, but that all will be amid a “volatile demand environment,” she said.

The carrier plans a “conservative approach” in planning capacity, and CEO Robin Hayes said JetBlue’s smaller size “allows us to respond quickly to changes in demand.”

Executives said reducing cash burn remains the top priority, and average daily cash burn in the second quarter was $9.5 million. That’s about half of what it was in late March. For the third quarter, JetBlue expects daily cash burn will be between $7 million and $9 million.

JetBlue reported a net loss of $320 million for the quarter, compared with net income of $179 million in the second quarter of 2019.
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Source: Business Travel News

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