JetBlue shares fluctuate amid debt concerns and quarterly losses

JetBlue Airways experienced significant stock volatility following reports that its creditors may be preparing for potential restructuring. Shares initially dropped nearly 10% on speculation that senior creditors had engaged financial advisor PJT Partners and law firm Akin to prepare for a possible business emergency or bankruptcy proceedings.

In its third-quarter earnings report, the airline posted an adjusted loss of 60 cents per share, which was wider than the 40-cent loss from the previous year and exceeded analyst expectations of a 55-cent loss. The company attributed the results to a 57% year-over-year surge in fuel costs, which averaged $3.91 per gallon.

Despite the losses, JetBlue raised its full-year forecast for unit revenue growth to a range of 13.5% to 14.5%. Following the earnings release, the stock saw a recovery in after-hours trading. The airline reported having $2.2 billion in liquidity, though it continues to manage a significant debt load, with long-term borrowings exceeding $8.8 billion as of late June.