JetBlue Creditors Organize as Debt Hits Record Lows
JetBlue creditors have hired financial and legal advisers as the airline faces a projected $1 billion cashflow deficit and record-low bond prices.
JetBlue Airways is facing intensified financial pressure as creditors organize to protect their interests ahead of the airline's third-quarter earnings report. A group of creditors, including holders of $2 billion in bonds due 2031 and a $742 million first-lien loan, have engaged PJT Partners and Akin Gump Strauss Hauer & Feld for financial and legal guidance.
The move comes as JetBlue's shares and debt have reached record lows, with bonds and loans trading at approximately 45 cents on the dollar. This instability is driven by soaring fuel costs and industry-wide guidance cuts following the bankruptcy of Spirit Aviation.
S&P Global Ratings recently lowered the airline's credit rating to CCC+. The agency projects a free cashflow deficit of approximately $1 billion in 2026, citing a pressured cost structure, delayed turnaround efforts, and an increasing debt service burden on a total debt of $8.5 billion.
