JetBlue Faces Major Credit Downgrades After Announcing $3 Billion Debt Plan

The airline's stock plummeted as it prepares to leverage its loyalty program for new financing amid financial struggles.

JetBlue plans to raise $3 billion through a mix of secured notes, term loans, and convertible notes.
Major credit rating agencies S&P and Moody's downgraded JetBlue's ratings, citing financial instability.
JetBlue's stock dropped over 20% following the debt announcement and credit downgrades.
The airline's loyalty program, TrueBlue, will serve as collateral for a significant portion of the new debt.
JetBlue is grappling with increased competition and operational challenges, including grounded aircraft due to engine issues.