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A group of JetBlue's major creditors has hired restructuring advisers after the airline's shares hit record lows, raising questions about how the carrier will manage its debt while trying to return to profitability. According to The Wall Street Journal, the creditors have brought in financial adviser PJT Partners and law firm Akin Gump Strauss Hauer & Feld, citing people familiar with the matter.
The move follows a difficult year for JetBlue, which reportedly explored a potential sale to rivals, including 
United Airlines. The appointment of restructuring advisers does not mean bankruptcy or major operational changes are imminent, but it adds to growing concerns about the carrier's struggling financial position.
JetBlue Faces Mounting Pressure To Turn Its Business Around
The creditor group includes holders of JetBlue's $2 billion in bonds due in 2031 and a $742 million first-lien loan. The New York-based carrier's stock dropped nearly 10% on Thursday to close at $2.65, its lowest level since it went public in 2002. In fact, its shares have plummeted by 42% so far this year amid a sharp rise in jet fuel prices.
JetBlue has spent the past two years trying to improve its performance through JetForward, a plan launched in July 2024 under CEO Joanna Geraghty. This focuses on controlling costs and making better use of the airline's network and aircraft. While the airline has made progress, higher operating costs have made a sustained recovery more difficult.
JetBlue recorded a $247 million net loss in the second quarter, even as revenue increased 14.5% year-on-year to $2.7 billion. In a statement to Reuters, JetBlue said it "remains confident in its JetForward strategy" and pointed to progress toward achieving sustained profitability.
Reports also emerged earlier this year that JetBlue had explored a possible sale to another airline, with United, Alaska Airlines and Southwest Airlines named as potential buyers. United CEO Scott Kirby was asked about JetBlue during a recent earnings call, but said he had "nothing new to add on that."
Rising Fuel Costs Add To Financial Strain
Rising fuel prices have become a significant problem for airlines globally. US jet fuel prices have nearly doubled since late February, with JetBlue's average fuel price skyrocketing by 76% to $4.23 per gallon in the second quarter. Additionally, the airline raised its estimate for third-quarter fuel costs in September.
Like most major US airlines, JetBlue does not hedge a significant amount of its fuel, leaving it exposed to sudden price increases. As of June 30, the airline had $8.5 billion in debt and finance lease obligations, while S&P Global Ratings recently downgraded the airline, citing pressure from higher fuel prices.
JetBlue's third-quarter results on October 27 could offer clues about whether its turnaround is progressing quickly enough to reassure lenders and investors. Meanwhile, for passengers, there is no indication that JetBlue's current flight schedule or onboard offerings will change.
New Routes And Premium Cabin Plans
Despite the financial pressure, JetBlue continues to invest in its product and network as it looks to attract more passengers and increase revenue per flight. One of its most significant moves is the introduction of BlueFirst, a new domestic first-class cabin on flights that do not feature its Mint business-class product.
Earlier this month, the carrier opened bookings for BlueFirst on more than 30 routes, with the first service scheduled between Boston Logan (BOS) and Fort Lauderdale (FLL) on December 8. Among the perks of the new cabin are wider recliner seats, complimentary meals, premium snacks and drinks, and priority services.
The carrier is also strengthening its network at key airports. This includes Fort Lauderdale — where it increased capacity by nearly 40% after Spirit Airlines folded — and at its bases in New York and Boston. However, the carrier has deferred 44 Airbus A321neo deliveries to 2030 and beyond as it seeks to preserve cash while continuing its turnaround efforts.