JetBlue Airways is not in talks with creditors and is not considering debt restructuring, Chief Executive Joanna Geraghty told Reuters, after senior creditors hired PJT Partners and Akin Gump as advisers. The move follows a sharp selloff in the airline’s TrueBlue-backed bonds, raising questions over whether JetBlue can fund its turnaround while carrying about $8.4 billion in debt and finance lease obligations.
The creditor group reportedly includes holders of approximately $2 billion in bonds due in 2031 and a first-lien loan worth about $742 million. The appointments do not indicate that JetBlue has begun formal restructuring or bankruptcy proceedings, but reflect growing concern over the carrier’s losses, fuel costs and debt obligations.
JetBlue reported a third-quarter net loss of $257 million, compared with $143 million a year earlier. Its TrueBlue-backed bonds traded at about 47 cents on the dollar, down from roughly 80 cents at the start of October, with yields above 30%.
The airline ended the quarter with $2.2 billion in liquidity and believes this is sufficient for at least 12 months. It can draw a further $600 million under an existing credit facility and expects about $250 million from aircraft-backed financing. Debt and finance-lease repayments total about $477 million in 2027 and $582 million in 2028, followed by approximately $1.8 billion in 2029. JetBlue continues to target operating profitability in 2027 and positive free cash flow in 2028.