(MarketWatch) – Shares of JetBlue Airways Corp. JBLU, +1.86% jumped 2.5% in morning trading Tuesday, after the air carrier said it has seen “modest improvement” in revenue and bookings since early August, boosted by visiting of friends and relatives (VFR) and leisure demand.
Meanwhile, JetBlue said it now expects capacity for the third quarter to be down 55% from a year ago, compared with previous expectations of a decline of “at least” 45%.
The average daily cash burn for the quarter is now expected to be at the lower end of the previously provided guidance range of $7 million to $9 million, citing “modestly improving demand trends, capacity actions and execution on costs.”
The stock has dropped 36.8% year to date, while the U.S. Global Jets ETF JETS, -0.23% has shed 45.4% and the S&P 500 SPX, +0.25% has gained 2.2%.