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JetBlue seeks to reassure investors as losses deepen
Reuters • • general
Key Points:
- JetBlue's shares surged 11% after-hours following a sharp decline due to reports of creditor restructuring amid a bond selloff, though shares remain down 48% year-to-date with short interest at 26%.
- The airline's TrueBlue senior secured notes saw heavy selling pressure, with bond prices halving and yields spiking above 30%, reflecting distressed market conditions.
- JetBlue raised its full-year seat revenue growth forecast to 13.5%-14.5%, citing higher fares and expansion, but continues to face challenges from rising fuel costs and operating losses.
- Despite $2.2 billion in liquidity and $7 billion in unencumbered assets, JetBlue's cash reserves have dropped significantly, with accelerating cash burn raising concerns about its financial flexibility.
- The airline posted an adjusted loss of 60 cents per share in Q3, missing analyst expectations, but maintains a target of positive free cash flow and $1 earnings per share by 2028, expecting improved operating margins in Q4.
