EL7.AI
StocksMedium•3 November 2026•
4 min read

JetBlue Creditors Organize $2.7 Billion in Holdings Amid Refinancing Pressure

Key Facts

1Creditors are working with advisers on holdings that include $2 billion in bonds due in 2031 and a $742 million first-lien loan.
2JetBlue closed at $2.65 on October 22, its lowest level since going public in 2002.
3The adjusted loss was 60 cents per share in the third quarter, compared with expectations for a loss of 55 cents.
4The company is targeting sustainable operating profitability in 2027, and profit of at least $1 per share and positive free cash flow in 2028.

JetBlue creditors have organized with advisers ahead of the airline’s third-quarter results announcement, reflecting mounting pressure on the carrier, according to Bloomberg Law on October 23. The group includes holders of $2 billion in bonds due in 2031 and lenders on a $742 million first-lien loan. The creditors are working with PJT Partners and Akin Gump, the report said. The move came as the company’s shares and bonds fell to record lows during the week of October 23. The appointment of advisers alone does not mean the company has begun a formal restructuring.

On October 22, JetBlue shares fell nearly 10% to close at $2.65, their lowest level since the company went public in 2002, according to Bloomberg Law. In the same session, $2 billion of bonds due in 2031 fell to about 40 cents on the dollar, a record low, according to TRACE data cited in the report. The prices showed a sharp decline in investors’ valuation of the company’s shares and debt. On October 26, the stock rose 11% in volatile after-hours trading, recouping some losses after ending the session down nearly 10%, according to Reuters. The price of a TrueBlue loyalty-program bond also fell to about $47 during October after losing half its value during the month, and its yield topped 30%, according to Reuters.

The move coincided with quarterly results that showed a divergence between revenue growth and widening losses. JetBlue said on October 26 that operating revenue was $2.8 billion in the third quarter, up 21.1% year over year, while revenue per available seat mile rose 18.4%. But the average fuel price was $3.91 per gallon, up 57% from the year-earlier period. The adjusted loss was 60 cents per share in the three months ended September 30, compared with a loss of 40 cents a year earlier, while analysts had expected a loss of 55 cents per share, according to LSEG data cited by Reuters. After the results were announced, the stock rose 11% in after-hours trading, following a loss of nearly 10% in the session.

The company faces pressure on its cash resources as well as fuel costs. Cash and cash equivalents fell to $1.26 billion at the end of the third quarter from $1.66 billion at midyear, while total cash and investments dropped by about $850 million, or a third, since December, according to Reuters. JetBlue, in contrast, said it ended the quarter with $2.2 billion in liquidity, including an undrawn $600 million credit facility. It added that $250 million in aircraft-backed financing is expected in the fourth quarter, in line with its usual financing mechanisms. The figures show the importance of the expected financing as cash liquidity declines and operating costs remain high.

Management maintained that creditors’ turn to advisers does not reflect direct discussions with the company about debt. Chief Executive Joanna Geraghty told Reuters on October 27: "We are not having conversations with our creditors," adding that debt restructuring was not under consideration. JetBlue said in a statement carried by Reuters that it remained confident in its JetForward strategy and progress toward restoring sustainable profitability. Geraghty said the company had not made an annual profit since 2019, and that its net loss in the first nine months of 2026 had nearly doubled to $823 million. The comments come as some creditors work with advisers while the company says it is continuing with its operating plan.

The company’s plan depends on revenue improving despite expectations of further fuel-cost pressure. JetBlue raised its forecast for seat revenue growth in fiscal 2026 to a range of 13.5%–14.5%, from a previous range of 10% to 12.5%, citing higher fares and expansion in Fort Lauderdale, according to Reuters. The company expects fuel prices to rise 85% year over year in the fourth quarter, but said it expects operating margin to improve during that quarter. Further out, it is targeting sustainable operating profitability in 2027, followed by profit of at least $1 per share and positive free cash flow in 2028. These remain targets announced by the company as creditors continue to organize.