JetBlue Airways Corp. (JBLU) swung to a loss in the second quarter as the COVID-19 pandemic grounded travelers. The New York-based airline said it had a loss of $320 million, or $1.18 a share, in the quarter, after income of $179 million, or 59 cents a share, in the year-earlier period. The company's adjusted loss per share came to $2.02, wider than the loss of $1.96 that was the consensus of FactSet analysts. Revenue tumbled 89.8% to $215 million from $2.105 billion. Traffic volumes and yields improved in May and June from their April trough. The airline reduced capacity by 85% from the year-earlier period due to aggressive action to offset cash burn. The company's average daily cash burn in May was $9 million, compared with expectations for just below $10 million. Average daily cash burn in the quarter was $9.5 million, lower than the company's expectation for $11 million. The company expects average cash burn to range from $7 million to $9 million a day in the third quarter. The company had about $2.9 billion in cash at quarter-end, and liquidity of about $3.4 billion including funds from the government program, the CARES Act. "While demand has improved materially from the lows we saw in April, bookings remain choppy, and we remain focused on addressing changing trends as we progress through the summer," Chief Executive Robin Hayes said in a statement. Shares were up 0.5% premarket, but have fallen 45% in the year to date, while the S&P 500 has gained 0.3%.
-Ciara Linnane; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
July 28, 2020 07:26 ET (11:26 GMT)
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