Exclusive-JetBlue CEO says no creditor talks, debt restructuring not under consideration

NEW YORK, Oct 27 — 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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