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JetBlue creditors hire advisors as financial concerns grow: report
Fox Business • • business
Key Points:
- Senior creditors of JetBlue Airways have hired financial and legal advisors, including PJT Partners and Akin, amid financial pressures from rising fuel costs and falling bond prices.
- JetBlue’s senior secured notes due in 2031 dropped to around 42 cents on the dollar recently, down from about 80 cents last month, reflecting investor concerns over the airline’s debt.
- The airline reported a $247 million net loss in Q2, with operating expenses up 20.8%, largely due to an 80.7% surge in fuel costs, which have been exacerbated by geopolitical tensions.
- Despite financial challenges, JetBlue maintains approximately $2.2 billion in cash and a $600 million undrawn credit facility, and CEO Joanna Geraghty has stated the airline is not considering bankruptcy in 2026.
- JetBlue’s turnaround efforts under its JetForward strategy have generated $470 million in incremental earnings before interest and taxes through June, and the company is set to report Q3 earnings on October 27.
