By John Ruddy, The Australian Financial PressAUSTRALIA’S TRAVEL BAN WILL MAKE JETBLUES SELL OUT ON THE STOCKHOLDER’S TOP PAGE IN JUST OVER TWO HOURS.
It will also be the first time JetBlue will have to sell shares on the stock market for a while.
The ban, which takes effect on September 1, will have the biggest impact on JetBlue’s stock price.
“Jets shares are at record levels and our customers and shareholders are looking for a safe and secure flight,” said JetBlue Chief Executive Officer Tom Selleck in a statement.
Selleck also warned that the airline’s customers will be left in the dark about what flights will be available.
“We are not going to tell our customers what they need to do to plan their trip and how long they will be on the plane,” he said.
JetBlue has been forced to slash its service in the wake of the travel ban.
It has also slashed its annual dividend from $15 to $10.3 million.
Since the ban, JetBlue has taken in $5.5 billion in revenue and $1.9 billion in profits.
And while JetBlue continues to grow its service, it’s been hit with a sharp drop in revenue, which has resulted in a cut in annual dividends and a loss of $500 million in cash.
For JetBlue, the ban will make its business less profitable.
While it’s still operating at the highest levels in the world, its revenues have dropped from $3.8 billion in the second quarter to $2.6 billion in 2019, according to the airline.
That’s down from $5 billion a year ago.
But JetBlue says the ban has already made its business more difficult.
In September, the airline slashed its workforce by 1,000 positions.
Its profits are down by $500,000 from the same month a year earlier.
So the company will likely need to reduce its dividend by a third to stay afloat.
Meanwhile, JetBuddy says the travel bans are having a devastating impact on its business.
Last month, JetBlackbuddy reported that it had recorded a record $3 billion in losses in 2019.
Jets share price has plummeted by more than 60 per cent since the ban took effect in the first quarter.
Although JetBlue said the ban would not have a significant impact on the airline, the company said it will likely have to cut its services.
When it comes to the stock price, JetBlues shares have fallen by more a quarter to a quarter of a billion dollars.
As a result, Jetblues shares are currently trading at less than a fifth of their peak price of $18.25.
This is a snapshot of the latest stock market data provided by Thomson Reuters.