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Markets News

UPDATE 1-JetBlue Airways forecasts higher fourth-quarter cash burn

(Adds details on revenue forecast)

Nov 30 (Reuters) - JetBlue Airways Corp said on Monday it expects cash burn to rise to about $8 million per day in the fourth quarter, citing recent booking trends and a delay in cash tax refunds.

A renewed surge in COVID-19 infections and travel curbs has further dimmed the financial outlook for the sector, which the International Air Transport Association (IATA) has predicted is set to lose $87 billion this year.

U.S. airlines received $25 billion in federal aid to keep employees on payroll between March and September and have now asked for a second round of support.

“Booking trends remain volatile and the company continues to believe demand and revenue recovery will be non-linear through the fourth quarter and beyond,” New York-based budget carrier JetBlue said.

It expects its fourth-quarter average daily cash burn to be between $6 million and $8 million, compared with its prior forecast of between $4 million and $6 million. (bit.ly/37imXXS)

It also forecast a 70% slump in revenue, compared with its prior expectation of an about 65% fall.

JetBlue had cash and short-term investments of about $2.8 billion as of Nov. 27.

Reporting by Sanjana Shivdas in Bengaluru; Editing by Shinjini Ganguli

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