JetBlue CEO says no creditor talks as bond selloff raises doubts about turnaround
JBLU•JetBlue CEO Joanna Geraghty said the airline is not discussing creditor support or debt restructuring as its bonds fell to distressed levels. The company reported a $823 million nine-month net loss, $2.2 billion in liquidity and a weaker full-year adjusted operating margin forecast of negative 4.5% to negative 6.5%.
1. No restructuring talks
Geraghty said JetBlue is not in talks with creditors, is not considering debt restructuring and is not seeking financial support from the US government. Her comments followed a sharp selloff in the airline’s bonds, while creditors reportedly hired restructuring advisers.
2. Debt and liquidity
JetBlue has about $8.4 billion in debt and finance lease obligations. Its roughly $2 billion of bonds backed by its TrueBlue frequent-flyer program traded at about $47 per $100 of debt on October 26, down from around $80 at the start of the month. The airline reported $2.2 billion in liquidity and said it could meet its needs for at least 12 months.
3. Turnaround outlook
JetBlue used $273 million in cash from operations in the first nine months of 2026, and unrestricted cash and investments fell about $850 million since December to $1.6 billion at September-end. Third-quarter revenue rose 21%, while fuel expenses increased 61%. The airline expects a full-year adjusted operating margin of negative 4.5% to negative 6.5%, but still aims to return to operating profitability in 2027 and generate positive free cash flow in 2028.
