JetBlue creditors enlist restructuring advisers as 2031 bonds plunge to 42 cents

JetBlue Airways' senior creditors have engaged restructuring adviser PJT Partners and law firm Akin as the carrier grapples with heavy cash burn and high oil prices. The airline's $2 billion of 2031 notes dropped to 42 cents on the dollar on Thursday and traded in the mid-40s on Friday, reflecting investor concern after a recent bondholder call. JetBlue reported $1.66 billion in cash and equivalents at the end of June, offset by $8.5 billion in borrowings and lease commitments, with much of the debt secured by its fleet and TrueBlue loyalty program.

The company maintains confidence in its JetForward strategy and plans to discuss financial progress during its Q3 results call. Creditors typically bring in advisers when repayment prospects appear uncertain, a sentiment heightened by recent airline bankruptcies such as Spirit Airlines.