JetBlue Airways has secured $500 million in committed aircraft-backed debt financing through a Framework Agreement with affiliates of SKY Leasing, LLC and UMB Bank as administrative agent. The deal, dated April 14 and filed with the SEC, is secured by up to 22 owned Airbus A320 and A220 family aircraft.
Each loan ties to a specific aircraft under individual terms, with maturities spanning 2033 to 2037. Fixed interest rates, based on U.S. Treasuries plus a margin, are expected to range from 6.00% to 6.75%, with monthly payments.
The structure features first-priority security interests, no-call periods followed by prepayment at par, and cross-default plus cross-collateralization provisions. An accordion clause allows up to $250 million in additional financing for more aircraft-secured loans on terms to be agreed.
This long-dated funding bolsters JetBlue’s $9.4 billion debt position and 4.44 debt-to-equity ratio, providing flexible liquidity for fleet management amid high leverage. Individual aircraft pledges enable phased drawdowns, supporting operational stability through 2037.