JetBlue (JBLU) Lowers Expectations for Q4 Revenues & Cash Burn

Zacks Equity Research
·2-min read

JetBlue Airways Corporation JBLU has reduced expectations for revenues and capacity in the fourth quarter of 2020. Additionally, the carrier anticipates cash burn to increase in the fourth quarter compared with its past expectation.

In a SEC filing, the Long Island City, New York-based carrier stated that it estimates flown capacity for the fourth quarter to decline 45-50% year over year compared with its previous expectation of a decrease of approximately 45%. The company plans to keep managing capacity on a rolling basis so that it is in line with demand.

Amid volatile booking trends, the carrier predicts revenues to plunge approximately 70% year over year compared with its earlier expectation of a decline of approximately 65%. Meanwhile, operating expenses are now anticipated to drop at least 30% year over year. Previously, the company expected the same to decrease 30%.

JetBlue Airways Corporation Price

JetBlue Airways Corporation Price
JetBlue Airways Corporation Price

JetBlue Airways Corporation price | JetBlue Airways Corporation Quote

 
Based on current booking trends, as well as due to a delay in receipt of cash tax refunds of approximately $70 million, the airline forecasts average daily cash burn to be between $6 million and $8 million in the fourth quarter. Previously, the same was expected to be in the band of $4 million-$6 million.

Zacks Rank & Key Picks

JetBlue carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are Landstar System, Inc. LSTR, United Parcel Service, Inc. UPS and GATX Corp. GATX, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of Landstar, UPS and GATX have gained more than 13%, 69% and 26% in the last six months respectively.

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JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report
 
United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
 
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GATX Corporation (GATX) : Free Stock Analysis Report
 
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