JetBlue reported on Tuesday (Oct. 27) an average daily cash burn of $6.1 million in Q3, which was better than a range of $7 to $9 million anticipated in late July. The airline anticipates a range of $4 million to $6 million for average daily cash burn in Q4, according to an announcement.
JetBlue President and Chief Operating Officer Joanna Geraghty said in the announcement that the company’s revenue fell 76 percent year over year in Q3, which was “a welcome improvement compared to our initial expectation.”
“We saw a modest, sequential improvement in August and September demand as new case counts decreased, and quarantine restrictions in some states were eased,” Geraghty said.
JetBlue decreased Q3 capacity by 58 percent year over year in contrast to an initial planning assumption of a minimum 45 percent drop. It also reported that operating expenses decreased 45 percent year over year.
The airline paid back $95 million in regularly scheduled debt and finance lease obligations in Q3.
As for its overall results, JetBlue reported a GAAP loss per share of $1.44 in Q3 on revenue of $492 million in Q3.
CEO Ed Bastian said on a call with analysts that the airline was “20 percent smaller than we were at the start of this year, having reduced our fleet, our headcount and our overhead.”
And American Airlines reported earlier in the month that it had lowered its cash burn to approximately $44 million daily in Q3 from approximately $58 million daily in Q2. At the time, the airline forecasted its Q4 cash burn rate to range from $25 million to $30 million daily.
EVP and CFO Derek Kerr said on a call with analysts that the air carrier has “moved quickly to raise incremental liquidity, reduce cash burn and become as efficient as possible.”