JetBlue’s Lenders Have Hired Advisers, and the Bond Market Is Flinching

A group of senior JetBlue creditors has hired a financial adviser and a law firm, One Mile at a Time reported on October 24, a step that often signals lenders are preparing for a restructuring conversation. The article does not name the firms.

The market has been moving fast. JetBlue stock closed Friday at $2.62, less than half its level three months earlier, and it has hit new lows in recent days. The airline’s $2 billion of notes due 2031 fell to 42 cents on the dollar earlier this week, down from close to 80 cents earlier in the month. JetBlue carries close to $9 billion in debt, and the report notes it has not turned a profit since before the pandemic.

JetBlue said it remains confident in its JetForward strategy and the progress being made toward returning to sustained profitability, and it did not address a Chapter 11 filing. The report adds that the CEO has said there will be no bankruptcy filing in 2026, while the author personally expects one in 2027. That forecast is the writer’s opinion, not a company position.

For passengers, an airline in bankruptcy keeps flying, but credits, points and future tickets can be affected. Travelers holding JetBlue vouchers or planning to buy far-out flights may want to use credits sooner, put new purchases on a credit card for chargeback protection, and watch for official updates.

Sources: One Mile at a Time, One Mile at a Time (latest news)