JetBlue Slows Cash Burn
During earnings call, executives say airline is cautiously optimistic that upward demand trends will continue
On JetBlue’s third-quarter earnings call, the company’s executives reported an improvement in the carrier’s cash burn in the third quarter, thanks to increasing demand for air travel.
Steve Priest, CFO, said the average daily cash burn for the quarter was $6.1 million, which beats the projected range of $7 million to $9 million that was anticipated three months ago. The airline is estimating cash burn in the fourth quarter of between $4 million and $6 million, a result of continuing cost cutting.
Priest said the airline is cautiously optimistic that the demand trends seen in August and September will continue.
Robin Hayes, CEO, said that the carrier’s strategic partnership with American Airlines in the Northeast, “will help accelerate our recovery, preserve jobs and allow us to continue our 20-year track record of disruption in the market with low fares and great service.”
The American-JetBlue deal is currently under regulatory review.
Hayes went on to say that rapid testing can be a critical step in balancing public health considerations while promoting an economic recovery, helping reopen domestic and international air travel.
