JetBlue Airways Forecasts Higher Fourth Quarter Cash Burn

By Dave Simpson
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.

News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.