JetBlue’s Stock Hit an All-Time Low Before a Sudden Rebound

JetBlue cut its 2026 outlook and reported a wider third-quarter loss on Monday, releasing results after the close a day earlier than planned. Shares closed at $2.37, down more than 20% over the week, after touching an all-time low of $2.27 during the session, then rose more than 10% after hours when the airline reaffirmed its long-term goals, Skift reports.

Those goals are earnings of at least $1 per share and positive free cash flow by 2028, with unit costs excluding fuel expected to show a meaningful step-down in the fourth quarter. CEO Joanna Geraghty is targeting sustained operating profitability by 2027. The targets assumed fuel near $3 a gallon, but fuel is averaging about $4.87.

The balance sheet is the worry. Bonds backed by the TrueBlue loyalty program and maturing by 2031 fell to a record 40 cents on the dollar from about 80 cents earlier in the month, per Bloomberg. JetBlue has raised about $3.7 billion in debt over two years, including $2.8 billion backed by TrueBlue, and has burned about $3.1 billion in cash since 2024. It has not posted a profit since the pandemic.

The Wall Street Journal reported that some senior creditors hired PJT Partners and Akin Gump Strauss to discuss a restructuring. Melius Research analyst Conor Cunningham said a restructuring would likely leave JetBlue smaller and that its routes, gates and slots could interest competitors, but a Chapter 11 filing is not certain. The reporting does not describe any change to flights or tickets.

Sources: Skift