JetBlue made the use of every opportunity to reduce 2020 losses

JetBlue has managed to reduce losses during 2020 by generating cash raising opportunities  despite the pandemic savaging the rest of the airline industry.

Overall, the New York-based airline earned US$2.9 billion of revenue in 2020, compared to the $8.09 billion it earned a year prior. As a result, JetBlue (JBLU) ended the year with a loss of $1.4 billion. All in all, the airline now has $3.1 billion of liquidity, as it managed to reduce its average daily cash burn to $6.7 million towards the end of 2020.

“2020 was a year like no other, as the COVID-19 pandemic challenged our industry in ways we have never seen before,” commented the Chief Executive Officer of JetBlue Robin Hayes. “The very foundation of our business model – our culture, our passion for customer service, and our focus on safety – continue to guide us as we march towards recovery.” The company noted that it had taken up several measures to manage its liquidity, including the redeployment of its assets “to capture short-term, tactical cash generation opportunities.” Furthermore, JetBlue raised over $700 million through sale-and-leaseback transactions and an equity offering on the market. Costs were also addressed, as the company managed its capacity aggressively.

“As we moved through 2020, we meaningfully reduced our cash burn, and are starting to shift our focus to rebuilding our margins. We remain cautiously optimistic that demand trends will improve later this year. More importantly, this crisis has made us a more agile, creative and resilient airline, and we believe our initiatives will allow us to emerge with structurally better margins,” concluded Hayes.