JetBlue Airways is facing mounting financial pressure, with some of its major creditors reportedly hiring financial and legal advisers to prepare for a potential debt restructuring. According to The Wall Street Journal, creditors are working with PJT Partners as JetBlue’s share price has fallen to $2.62, losing more than half its value over the past three months.
JetBlue, which has not reported an annual profit since before the pandemic, has accumulated approximately $9 billion in debt. Meanwhile, the value of its $2 billion in bonds maturing in 2031 has fallen from 80 cents to 42 cents on the dollar. The airline’s proposed $3.8 billion acquisition of Spirit Airlines in 2022 was blocked by regulators, while JetBlue’s market capitalisation has declined to approximately $990 million.
JetBlue management maintains its commitment to restoring sustainable profitability through its JetForward strategy. Although the airline’s CEO previously stated that the company would not file for bankruptcy protection in 2026, its deteriorating financial position has raised the possibility of a Chapter 11 filing, which would allow the airline to restructure its debts under U.S. bankruptcy law.
No official decision to file for bankruptcy protection has been announced.
