JetBlue Airways Corporation (NASDAQ:JBLU) Q2 2020 Earnings Conference Call - Final Transcript
Jul 28, 2020 • 10:00 am ET
a mission to inspire humanity and there is no more opportune time for us to show exactly what this means than through our actions. We are looking inwards, addressing our own processes and policies at JetBlue.
We have started to work with our crew members to prioritize meaningful changes that they would like to see in support of inclusiveness and racial equality. Leading with our values, we are committed to ensuring that we look at our business practices through the lens of diversity, equality, and inclusion.
As a company, we are also faced with a historic decline in demand and the reality of needing to be a smaller company for the time being. I want to take a moment to acknowledge the sacrifice made by our crew members who have decided to take voluntary opt-outs or participate in our voluntary time-off programs, which helps us adjust our staffing to the incredible drop in demand that our industry is facing.
By stepping up, they have protected many jobs at JetBlue, helping us to navigate the most difficult period in our history. We wholeheartedly thank them for their amazing contribution to JetBlue and to those of you who are leaving, we wish you all the very best in your next chapter.
Turning to Slide 4 of our presentation. For the second quarter, we reported a GAAP loss of $1.18 per share. Despite reporting a truly staggering loss that reflects the steep fall in demand that started in late February, we have been decisive in taking actions to protect JetBlue and to emerge stronger as we manage through recovery. In the past two months, we've made progress in reducing our cash burn and have been quick to re-size operations in this dynamic demand environment. Despite a recent softening in demand, we are still on track to take our cash burn to between $7 million to $9 million a day in the third quarter.
Since April, we raised nearly $1 billion in liquidity and our balance sheet remains among the strongest in the industry. While demand has improved materially from the historic lows we saw in April, bookings remain choppy and we remain focused on addressing changing trends as we progress through the summer. Our network continues to be impacted by spikes in COVID cases and quarantine measures, but we have seen that customers are willing to travel to see their family and friends. It is highly likely that this recovery will not be linear, but our smaller size allows us to respond quickly to changes in demand. We are confident that our low-cost, low-fare leisure model coupled with our trusted brand will be instrumental and central in navigating recovery.
Let's move on to Slide 5 of our presentation. We recognize that recovery starts with rebuilding customers confidence in flying again. At the onset of this crisis, we created a comprehensive approach we call safety from the ground up. Our focus has been on taking all precautions with health and safety protocols that our