Report: JetBlue creditors enlist PJT amid $8.537 billion in debt and obligations
Key Facts
A Reuters article headline, citing The Wall Street Journal, said JetBlue creditors are working with PJT Partners as restructuring adviser, putting the airline’s financial pressures under scrutiny. The available facts did not include direct confirmation from JetBlue or its creditors of the engagement, so the news remains attributed to the press report. The company’s latest figures show the carrying value of its long-term debt, net of issuance costs, was $8.478 billion on June 30, 2026, compared with $8.498 billion at the end of 2025. Debt and finance lease obligations together totaled $8.537 billion before issuance costs and current maturities. This coincided with a net loss of $247 million in the second quarter, compared with $74 million in the same period a year earlier.
The company disclosed that cash and cash equivalents fell to $1.656 billion at the end of June from $1.946 billion on December 31, 2025. Its working capital deficit also widened to $1.4 billion from $1.2 billion over the same period. JetBlue said working capital declined by $213 million, citing higher air traffic liabilities and lower current cash and restricted cash. The impact was partly offset by lower current maturities and higher investment securities and inventories. Despite the wider deficit and lower cash, the company said in its filing that it believes it has sufficient liquidity to meet its cash needs over at least the next 12 months.
Second-quarter results showed a divergence between revenue growth and mounting pressure on earnings. Operating revenue rose 14.5% year over year to $2.697 billion from $2.356 billion. The company said revenue per available seat mile increased 10.9%, near the favorable end of its updated guidance range, supported by strong demand across most products and geographic regions. But revenue growth did not prevent the net loss from rising to $247 million, compared with $74 million a year earlier. Fuel costs remained a drag during the quarter, with expenses and fuel prices higher year over year.
Jet fuel expense was $911 million in the second quarter, compared with $504 million in the same period of 2025, an 80.7% annual increase. JetBlue said the average fuel price reached $4.23 per gallon, up $1.83 from a year earlier, or about 76%. In the first half of 2026, the company used $35 million in operating cash flow, compared with $1 million in the first half of 2025. For its full-year outlook, the company estimated an adjusted operating margin of between negative 2% and negative 5%. It also expected interest expense of about $590 million during 2026, adding a financial burden in a year when it expects a negative operating margin.
Maturities of long-term debt and finance leases are spread across varying amounts in the coming years. Scheduled maturities for the remainder of 2026 are about $236 million, followed by $478 million in 2027. The amount due reaches $1.835 billion in 2029, more than the figures cited for the two preceding periods. These maturities come as cash liquidity declines and the working capital deficit widens, while the company says it believes liquidity is sufficient for the next 12 months. JetBlue is scheduled to hold a call to discuss its third-quarter results on October 27, 2026, at 10:00 a.m. Eastern time.
PJT Partners disclosures indicate that global restructuring and special situations activity remained strong in the second quarter of 2026. The company attributed this to ongoing liability management, balance-sheet restructurings and bankruptcy activity, without linking its disclosures to an engagement by JetBlue creditors. In the market, JetBlue shares closed at $2.65 on October 22, while PJT Partners shares closed at $142.85 on the same day. These prices show the closing levels on that date and do not, on their own, establish a link between either stock’s movement and the reported adviser engagement. JetBlue’s upcoming call will give management an opportunity to present third-quarter results and updates, as investors await what it may say about liquidity, financing and costs.