JetBlue expects to see its "largest sequential improvement" in revenue during the second quarter, as it has seen demand pick up faster than expected since February, the carrier's executives said Tuesday during its quarterly earnings call.
The carrier reported $670 million in passenger revenues for the first quarter, down 55.7 percent year over year and 62.9 percent compared with the first quarter of 2019. Capacity in the first quarter was down 41 percent compared with the first quarter of 2019.
As leisure demand has strengthened in recent months, JetBlue projects second-quarter revenue will be down between 30 percent and 35 percent compared with 2019, with capacity down 15 percent, according to JetBlue president and COO Joanna Geraghty. The carrier reached breakeven cash from operations in March, and by the third quarter, it expects to reach breakeven in earnings before interest, taxes, depreciation and amortization, CFO Steve Priest said.
JetBlue reported "good growth" in corporate travel, although that was against a very low base, VP of sales and revenue management David Clark said. Corporate travel currently is running about 80 percent below usual levels in terms of bookings, which is an improvement from January, when it was down 95 percent, he said. Stronger corporate demand could occur in the fall.
"As we stay close and talk with our largest customers, we expect to see a phased approach as they get through the summer, especially as they return to office in the late summer and early fall, and they expect to really accelerate travel in the September-October timeframe," Clark said. "When that returns and how robustly they come back is something we're still looking at very closely."
JetBlue reported a net loss of $247 million in the first quarter, compared with a loss of $268 million in the first quarter of 2020.
RELATED: JetBlue Q4 earnings