JetBlue’s stock jumps after swinging to narrower-than-expected loss, as revenue fell less than forecast

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Shares of JetBlue Airways Corp. rose 1.4% in premarket trading Tuesday, after the air carrier swung to a narrower-than-expected loss, as revenue fell less than forecast. JetBlue reported a net loss of $393 million, or $1.44 a share, after net income of $187 million, or 63 cents a share, in the year-ago period. Excluding non-recurring items, the company swung to an adjusted loss per share of $1.75 from EPS of 59 cents, but beat the FactSet consensus for a loss of $1.96 a share. Revenue dropped 76.4% to $492 million, but topped the FactSet consensus of $466 million. Load factor declined to 42.6% from 85.5%, missing expectations of 46.0%, as traffic declined 78.9% while capacity fell 57.6%. Average daily cash burn was $6.1 million, below previously provided guidance of $7 million to $9 million. The company is planning for fourth-quarter revenue to declined 65%, while the FactSet consensus of $698 million implies a 65.6% decline. The stock has shed 32.9% year to date through Monday, while the U.S. Global Jets ETF has dropped 43.6% and the S&P 500 has gained 5.3%.
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