By Doyinsola Oladipo
NEW YORK, Oct 27 (Reuters) – JetBlue Airways is not in talks with its creditors and is not considering a debt restructuring, CEO Joanna Geraghty told Reuters on Tuesday, as the airline seeks to calm concerns about its financial health following a sharp selloff in its bonds. Her comments came days after a group of creditors hired restructuring advisers PJT Partners and Akin Gump, according to media reports, raising questions about the carrier’s ability to manage its debt.
The concern among investors is whether JetBlue can fund its turnaround without having to renegotiate its debt. The airline has about $8.4 billion in debt and finance lease obligations, has not posted an annual profit since 2019 and saw its nine-month net loss nearly double to $823 million amid soaring fuel costs.
“We are not in talks with our creditors,” Geraghty said. “Part of today, as I mentioned, was to really set the record straight that we’re making progress in the underlying business.”
She reiterated that debt restructuring was not under consideration.
JetBlue’s TrueBlue senior secured note, a bond backed by the airline’s loyalty program, came under heavy selling pressure this month, with the price halving to about $47 and yields surging to distressed levels above 30% as of October 26, according to data from LSEG.
“Our results tell a very different story from what our bondholders are communicating out there in the market,” she said.
The airline used $273 million in cash from operations in the first nine months of 2026, nearly double the $143 million a year earlier. Its unrestricted cash and investments fell about $850 million since December to $1.6 billion at September-end, partly reflecting aircraft purchases.
JetBlue reported $2.2 billion in liquidity and about $7 billion in assets not already pledged to lenders that could help it raise additional funds.
The airline aims to return to operating profitability in 2027, but has lowered its full-year margin forecast despite stronger fares. It expects positive free cash flow in 2028.
(Reporting by Doyinsola Oladipo in New York; Writing by Rajesh Kumar Singh; Editing by Nia Williams and Daniel Wallis)
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