JetBlue Reduces Flights 70%, Burns $10 Million a Day

(Bloomberg) -- JetBlue Airways Corp. will park 100 aircraft and reduce flying capacity 70% this month as passenger loads plummet because of the new coronavirus.

The carrier expects the number of passengers to fall to 7,000 daily in April from about 120,000 that it would typically expect, a plunge of 94%, JetBlue said in a statement Friday. The New York-based airline also is burning through $10 million of savings each day.

Airlines worldwide have been battered by the rapid, sharp decline of travel demand as the virus has spread across the globe. The number of passengers going through U.S. security screening has tumbled more than 90% from a year earlier. JetBlue and other airlines began applying Friday for $25 billion in U.S. grants to help cover payroll expenses and are eligible for another $25 billion in loans.

“Just a few weeks ago, we couldn’t get new aircraft fast enough,” Chief Executive Officer Robin Hayes said in a statement. “Now we are taking steps to sit down the aircraft we have.”

Hayes warned that the carrier will need to raise additional funds, even if it receives federal money, to pay other operating costs.

Daily bookings and ancillary fees are producing about $1 million a day this month, down from $22 million a year ago, JetBlue said. The carrier meanwhile is issuing another $2 million in cash refunds and $11 million daily of travel bank credits for canceled reservations.

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