Overview
- In late October a group of senior creditors retained investment bank PJT Partners and law firm Akin to advise holders of about $2 billion in secured notes and a $742 million secured loan.
- JetBlue’s 2031 senior secured notes plunged from roughly 80 cents on the dollar to the low 40s before a partial rebound to the mid-40-cent range, signaling acute market concern about repayment.
- The airline carries roughly $8.5 billion in debt and finance leases while reporting about $2.2 billion in unrestricted cash and a $600 million undrawn credit line at June 30 and completing a $500 million aircraft-backed financing in April.
- JetBlue posted a $247 million net loss in the second quarter as fuel expenses jumped 80.7% year over year to $911 million, even as management says its JetForward program generated about $470 million in cumulative incremental EBIT through June.
- JetBlue will report third-quarter results on Oct. 27, a near-term test for its liquidity and turnaround that could prompt creditor demands for tighter cash controls, asset sales, or formal restructuring though hiring advisors does not prove bankruptcy is imminent.