Key facts
- JetBlue CEO Joanna Geraghty stated the airline is not in talks with creditors or considering debt restructuring.
- Creditors have reportedly hired advisors PJT Partners and Akin Gump.
- JetBlue's senior secured notes due 2031 fell to about 42 cents on the dollar recently.
- The airline reported a $247 million net loss in the second quarter.
- Aircraft fuel expenses rose 80.7% year-over-year to $911 million.
JetBlue Airways is not engaged in discussions with its creditors or contemplating a debt restructuring, according to CEO Joanna Geraghty. Her comments aim to alleviate concerns about the airline's financial stability, which have been amplified by a significant decline in its bond prices. This statement follows reports that a group of JetBlue's senior creditors has enlisted restructuring advisors PJT Partners and Akin Gump. The airline is managing approximately $8.5 billion in debt and finance lease obligations, and its shares have fallen significantly since early August. JetBlue reported a net loss of $247 million in the second quarter, with operating expenses climbing due to higher fuel costs.