JetBlue Airways Forecasts Higher Fourth Quarter Cash Burn
JetBlue Airways Corp has said that it expects its cash burn to rise to approximately $8 million per day in the fourth quarter, citing recent booking trends and a delay in cash tax refunds.
A renewed surge in COVID-19 infections and travel curbs has further dimmed the financial outlook for the airline sector, which the International Air Transport Association (IATA) has predicted is set to lose $87 billion this year.
US airlines received $25 billion in federal aid to keep employees on payroll between March and September, and have now asked for a second round of support.
"Booking trends remain volatile and the company continues to believe demand and revenue recovery will be non-linear through the fourth quarter and beyond," New York-based budget carrier JetBlue said.
It expects its fourth-quarter average daily cash burn to be between $6 million and $8 million, compared with its prior forecast of between $4 million and $6 million.
It also forecast a 70% decrease in revenue, compared with its prior expectation of a fall of approximately 65%.
Cash And Short-Term Investments As Of November 27
JetBlue had cash and short-term investments of approximately $2.8 billion as of November 27.