JetBlue Airways switches to quarterly losses as coronavirus reduced revenue by 90%

A Jet Blue plane takes off from Long Beach Airport in Long Beach, CA.

Tim Rue | Bloomberg | fake pictures

JetBlue Airways said Tuesday it lost in the second quarter and forecast revenue will drop approximately 80% in the third quarter as the coronavirus pandemic promises a choppy recovery in travel demand.

The New York-based airline carried just 616,000 passengers in the three months ended June 30, more than 94% of the 11 million that flew JetBlue in the same period last year. Revenue fell about 90% from the second quarter of 2019 to $ 215 million from more than $ 2.1 billion during the same three months last year.

JetBlue is the latest airline to detail the financial losses from the coronavirus crisis, which kept millions of potential travelers at home. Executives caution that while demand bottomed out in the spring, a faltering recovery is looming due to increased virus cases and new travel restrictions.

The crisis has been particularly painful for airlines because it is hitting the key summer travel season, the most lucrative for airlines.

JetBlue, like its competitors, cut flights in an effort to cut costs as demand fell. JetBlue’s third-quarter capacity will decrease “at least” 45% compared to last year, the company said in a presentation of earnings calls.

Cash consumption in the second quarter averaged $ 9.5 million per day and will likely average between $ 7 million and $ 9 million per day in the current quarter.

JetBlue posted a net loss of $ 320 million in the three months ended June 30, below the net profit of $ 179 million a year ago.

The airline’s shares fell 0.6% in premarket trading. Company executives will detail their results and prospects in a call at 10 am ET.