JetBlue defends its finances as creditors hire restructuring advisers

JetBlue is trying to reassure investors it can turn its business around after a group of creditors hired restructuring advisers and the airline reported a deeper quarterly loss despite bringing in more money.

JetBlue CEO Joanna Geraghty told Reuters on October 27, 2026, that the airline was not discussing a restructuring with creditors or seeking US government financial support.

“We are not in talks with our creditors,” she said.

Her comments followed an October 23 Bloomberg report that creditors holding some of JetBlue’s bonds and loans were working with investment bank PJT Partners and law firm Akin Gump Strauss Hauer & Feld. The group includes holders of $2 billion in bonds due in 2031 and a $742 million first-lien loan, Bloomberg reported, citing people familiar with the matter.

JetBlue’s latest financial results, released on October 26, showed a net loss of $257 million for the three months ended September 30, 2026, compared with a $143 million loss a year earlier. Revenue rose 21.1% to $2.8 billion, but the airline paid far more per gallon for jet fuel.

Its adjusted loss widened to 60 cents per share from 40 cents a year earlier, missing analysts’ forecast of a 55-cent loss, according to LSEG data cited by Reuters.

JetBlue ended September 2026 with approximately $1.63 billion in cash and investment securities, down from $2.48 billion at the end of 2025. Total debt stood at about $8.4 billion.

JetBlue spent $273 million more running its business than it brought in during the first nine months of 2026, compared with $143 million a year earlier. Its loyalty-backed TrueBlue bonds were trading at about 47 cents on the dollar on October 26, with yields above 30%, Reuters reported.

JetBlue says it can borrow another $600 million through an existing credit line. It also expects to raise $250 million later this year through loans secured by its aircraft.

The airline also said it had approximately $7 billion in assets not pledged as collateral, including $2.8 billion in aircraft and engines. Those assets provide financing options, but are separate from its available cash.

Geraghty said stronger fares and demand were helping JetBlue absorb higher fuel prices. Revenue per available seat mile rose 18.4%, and the airline said it recovered approximately 87% of the increase in fuel costs during the quarter.

Fort Lauderdale was a particular source of growth. Revenue per available seat mile there increased nearly 15% despite capacity rising more than 65%. JetBlue plans to operate more than 150 daily departures at its winter peak, up 39% from a year earlier.

JetBlue is also waiting on new first-class seats it is counting on to bring in more money. President Marty St. George said supply shortages are limiting how quickly the airline can install its BlueFirst cabins. Most aircraft are expected to be fitted by the end of 2027, but the work will continue into 2028.

“But I would gladly take seats faster if we could,” St. George said on the earnings call.

JetBlue aims to earn an operating profit in 2027 and have positive free cash flow in 2028. It expects fuel to cost 85% more per gallon in the fourth quarter than a year earlier.The post JetBlue defends its finances as creditors hire restructuring advisers appeared first on AeroTime.

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