JetBlue creditors hire advisors as stock and debt hit lows

JetBlue Airways' major creditors have engaged restructuring advisor PJT Partners and law firm Akin Gump Strauss Hauer & Feld ahead of the company's third-quarter financial results. This move comes as the airline faces significant financial pressure, with both equity and debt trading at all-time lows.

Key bondholders holding $2 billion in debt due in 2031, along with holders of a $742 million secured senior loan, are mobilizing in response to the company's declining market value. JetBlue's stock recently hit a historic low of $2.65, reflecting investor concerns and short interest exceeding 30% of the float.

Operational challenges, including a sharp rise in fuel costs, have exacerbated the situation. After suspending the use of futures contracts to hedge prices, the airline faces an estimated $2.5 billion increase in fuel expenses for 2026.