JetBlue Airways swings to quarterly loss and expects revenue to drop 80% in Q3

JetBlue on Tuesday said it swung to a loss in Q2 and forecast that revenue will fall by about 80% in Q3 as the coronavirus pandemic promises a choppy recovery in travel demand. The New York-based airline carried just 616,000 passengers in the three months ended June 30, down more than 94% from the 11 million who flew JetBlue in the same period last year. Revenue plunged about 90% to $215m from more than $2.1b in Q2 2019. JetBlue is the latest airline to detail financial losses stemming from the coronavirus crisis, which kept millions of would-be travelers at home. Executives are warning that while demand bottomed out in the spring, a choppy recovery is ahead because of a surge in virus cases and new travel restrictions. JetBlue, like its competitors, slashed flights in an effort to cut costs as demand fell. JetBlue’s third-quarter capacity will be down “at least” 45% compared with last year, the company said in an earnings call presentation. Cash burn in Q2 averaged $9.5m a day and will likely average between $7-$9m a day in the current quarter. JetBlue posted a net loss of $320m for the three months ended June 30, down from net income of $179m a year earlier. <br/>