The entire airline industry has been in a state of depression since the coronavirus pandemic halted nearly all travel beginning in March.
JetBlue’s revenue tumbled 90% in the second quarter to $215 million from $2.105 billion in the year-ago quarter.
The company posted a loss of $320 million, or $1.18 a share, in the latest quarter, down sharply from $179 million, or 59 cents a share, last year. Adjusted earnings were $2.02 a share, wider than the FactSet analyst consensus that called for a loss of $1.96.
JetBlue has proposed using its loyalty program as collateral to gain a government loan under the CARES Act stimulus program passed in March. Other airlines also have used their air miles as collateral for loans. They also have used their planes and airport gates.
JetBlue also said it will consider airplane retirements in coming months and that it anticipates operating two-thirds of its normal flight schedule in the fourth quarter. That’s an ambitious goal, given that it expects third-quarter capacity will be down “at least” 45% compared from last year.
“In the past two months, we made progress in reducing our cash burn,” CEO Robin Hayes said in a statement.
"While demand has improved materially from the lows we saw in April, bookings remain choppy, and we remain focused on addressing changing trends as we progress through the summer,” Hayes said.
JetBlue shares recently traded at $10.34, up 1.12%, but have sunk 45% year to date.