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.”
When asked if the airline was pursuing any financial support from the US government, Geraghty said it was not. She also reiterated that debt restructuring was not under consideration.
Separately, Geraghty met with US Commerce Secretary Howard Lutnick last week to discuss a range of issues, according to a person briefed on the matter.
JetBlue declined to comment on whether the meeting occurred. The Commerce Department did not immediately respond to a request for comment.
The company’s roughly $2 billion in bonds backed by its TrueBlue frequent-flyer program were trading at about $47 for every $100 of debt on October 26, down from around $80 at the start of the month, according to LSEG data. The steep drop pushed yields, the returns investors demand for holding the bonds, above 30%, signaling growing concerns about the airline’s ability to repay its debt.
“Our results tell a very different story from what our bondholders are communicating out there in the market,” she said in an interview.
FUNDING THE TURNAROUND
JetBlue 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.
The airline faces scheduled debt and finance lease repayments of $477 million in 2027 and $582 million in 2028, before a larger $1.8 billion comes due in 2029, according to its quarterly filing.
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.
In its quarterly filing, JetBlue said it had enough liquidity to meet its needs for at least the next 12 months. Executives also expressed confidence on Tuesday that the airline could secure additional financing to support its turnaround through 2028.
The company expects another $250 million in aircraft-backed financing in the fourth quarter. On Tuesday’s earnings call, Geraghty also identified potential funding sources beyond traditional borrowing, including JetBlue’s Paisly travel business, venture investments and co-branded credit-card partnership, but gave no details of any specific plans.
Despite stronger ticket revenue, soaring fuel costs continue to undermine its recovery. Third-quarter revenue rose 21%, but fuel expenses jumped 61%.
JetBlue now expects a full-year adjusted operating margin of negative 4.5% to negative 6.5%, worse than the negative 2% to negative 5% forecast in July.
The airline still aims to return to operating profitability in 2027 and generate positive free cash flow in 2028.
(Reporting by Doyinsola Oladipo in New York; Additional reporting by David Shepardson in Washington; Writing by Rajesh Kumar Singh; Editing by Nia Williams, Daniel Wallis and Nick Zieminski)
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