Exclusive Report - JetBlue Airways CEO says no talks with creditors, currently not considering debt restructuring

Full article includes CEO comments and background details

Doyinsola Oladipo

Reuters New York, October 27 - JetBlue Airways (JetBlue Airways, JBLU.O) CEO Joanna Geraghty told Reuters on Tuesday that the company is not currently in negotiations with creditors nor is it considering a debt restructuring. This comes as the airline seeks to calm concerns about its financial health, following a selloff in its bonds that has heightened market anxiety.
According to media reports, days before her comments, a group of creditors had hired restructuring advisers PJT Partners and Akin Gump, triggering questions about JetBlue’s ability to manage its debt.

Investors are concerned about whether JetBlue Airways can fund its return to profitability without renegotiating its debt. The airline has about $8.4 billion in debt and finance lease obligations, has not turned an annual profit since 2019, and saw its net loss for the first nine months nearly double to $823 million amid surging fuel costs.

“We are not currently in negotiations with creditors,” Geraghty said. “As I mentioned today, part of the purpose of this meeting is to clarify the facts and show that we are making progress in our core business.”

She reiterated that a debt restructuring is not being considered at this time.

According to LSEG data, JetBlue Airways’ “TrueBlue” senior secured notes (a bond backed by the airline's loyalty program) have faced heavy selloffs this month, with prices halved to about $47 as of October 26 and yields surging to over 30%, a level indicating distress.

“Our performance is markedly different from the information being circulated in the market by bondholders,” she said.

The airline used $273 million in operating cash flow in the first nine months of 2026, nearly double the $143 million it used the same period last year. Its unrestricted cash and investments fell by about $850 million since December, dropping to $1.6 billion as of the end of September, partly due to aircraft purchases.

JetBlue Airways reported $2.2 billion in liquidity and about $7 billion in assets that have not yet been pledged as collateral to lenders, which may help it raise additional funds.

The airline plans to return to operating profitability by 2027 but has lowered its full-year margin outlook despite higher ticket prices. It expects to deliver positive free cash flow in 2028.

(To assist non-native English speakers, Reuters has automated the translation of this report into several other languages. As automated translation may contain errors or lack the required context, Reuters does not guarantee the accuracy of the translated text and provides it solely for readers’ convenience. Reuters bears no responsibility for any harm or loss caused by the use of the automated translation tool.)