It’s obviously an incredibly challenging time for the airline industry across the board, given the impacts that high jet fuel prices are having on airline margins. It’s nearly impossible for even the world’s most profitable airlines to make money with jet fuel prices where they are, given the elasticity of airfare demand.
Continue reading: JetBlue CEO Confidently Rules Out Bankruptcy Filing… But Only For 2026
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I think we're all reading way to much into the wording of this memo. I get that it's easy to cleave to the part about "this year," but that doesn't mean a 2027 filing is inevitable, either.
@ Kevin -- I don't think anyone is suggesting it's inevitable in 2027, but instead, that it's only being ruled out in 2026.
maybe JetBlue needs to preemptively do it, just to rip the band aid off and save like a $1.5 billion of interest payments over next two years. Not financial advice.
They just borrowed enough money that, combined with summer demand, B6 can likely get through the summer and hope to be acquired in the fall under "failing airline" doctrine.
Unlike NK, B6 has real assets that have value despite their massive debt -most of which cannot be reduced in bankruptcy because it is secured by airplanes and other assets or is government covid money which can't be discharged in bankruptcy.
the fall of 2026 and winter of 2026-27 will be pivotal to the future of the industry. B6 is just stringing everyone on for another 6 months.
feel free to show your math for the $1.5 billion in interest payments.
It is largely for secured debt; they might be able to push the debt and payments back a few years but B6 is fundamentally not a financially viable business and they won't get their debt down even if they can figure out to be profitable - which they have not figured out both before and after covid
'the fall of 2026'... will be when your guy loses Congress, soon.
jetBlue should survive. It's a good airline. More legroom in Economy, IFE with live-TV, free WiFi, good food and beverage, Mint.
The Wall Street Journal reports that the US government is working on a $500 million loan to NK.
B6 will be next.
The US esp. in an election year cannot let airlines fail.
You truly should stop w/ your endless attempts at dividing.
Nowhere have I ever said who I support. I have stated facts which you at times have not been willing to accept.
and this little badly executed foray in Iran and the resulting high fuel prices will result in a major upending in the national political scene.
THAT is calling a spade and spade.
and if the US (as noted above) intervenes again in the US airline industry, it is bad for consumers and taxpayers who will be left holding the bill for a failed business model that can't be fixed - and that is true for B6 as well
I'm not saying Jetblue is going Chapter 11 but bankruptcy protection tends to be like drug addiction. There's no "problem/addiction" until the addict arranges to go into recovery.
Of course, JetBlue may well be behind the scenes working to find an acquisition partner, probably it's best hope.
Project much, Tim? It's the billionaires and their corporations/media that are set on dividing and conquering labor and consumers, not lil'ole 1990...
Woah there, partner... who you call a 'spade' now? Wouldn't say that too loud in some parts of Atlanta, sir. *cough*
When you are a public face of a big business or agency, you are both a politician and a used car sale representative. By the same token, hedge funds and capital ventures are loan sharks and leeches. Trump is a cult political leader and a miserably failed business guy. Trump Organization is exactly what Letitia James describes "a criminal organization". He built it on the backs of employees, service providers and suppliers while feeding off corrupted enabling politicians, namely Cuomo as both AG and governor. There is a remote chance that summer travel will be as normal and busy as usual. What happens when the global aviation takes a steep dive and airlines start pressuring governments for a bailout package to sustain their survival, like at the start of Covid? Domestic programs have been slashed to the bare bones in pursuit of foreign and domestic wars, not military operations. And Trump voters are the most to lose--exactly what Jimmy Kimmel declared on his show on the election night.
WTF are you talking about and WTF does this have to do with JetBlue? Maybe stop bringing your TDS into every conversation. Despite what you might think, Trump might be a moron but he's not responsible for every action that occurs in the world.
With B6 ranked above all of the so called ‘Big3’ some are content that pigs will fly before B6 ‘bangs-out’ of the game.
I do believe that Tim knows the difference between a spade and a shovel. I am confident that he is also aware that in the real English speaking world, calling a spade a spade, means telling it as it is …. yes?
Only in the U.S. can the English language be so adulterated.
She's window shopping. If she had said a merger was off the table, the ink was already dry on the contract. Now she's got the door open for potential suitors and says to them we ain't broke, yet. So no low balls, I know what I got. And distances themselves from Spirit, who is the broke cousin that's going to ask for money.
JetBlue may be one of those companies where the sum of the parts is worth more than the whole.
We’re not even halfway to 2026 and B6 eyes are already watering. They’re cooked! What would be best for public and even cool to see is frontier buy spirit then jet blue (in next 8-12 months). Then they’d be a real transcontinental and light-moderate international airlines.
Frontier could rule economy seats, even for travelers coming from other nations.
I have no interest in being wiht someone that parrots the same thing w/o any consideration for facts and data
except you don't get to the parts unless you deal w/ the debt.
AA falls in the same category- lots of assets hiding behind massive amounts of debt
No one wrote otherwise. I was making a very simple observation. There's no need to make more out of it than the face value of the comment. And speaking of value, just because jetBlue and American aren't PERFECT doesn't mean they don't have value.
The ULCC model doesn’t work in the US.
The big 4 have large networks and basic economy. It just doesn’t work.
I've never been able to fly JetBlue. They have never been able to provide a route that works for me. Not direct, not with stops or layovers. Nothing. I would love to fly them as they're the closest thing to Virgin America left but nope. I'm stuck on Southwest or American.
George, TDS is a weak retort. The President (whoever they are) sets the tone for people, worldwide. You do seem to know (since you literally admit 'he's a moron but..') that Trump is not a good role model for citizens, businesses, children, parents, anyone and everyone. So, why do you trust/justify being led by a moron, anyway?
Oh, come on, DesertGhost... as you like to say to others: "You've been CEO of how many airlines?"
JetBlue is a decent airline; I wish the Big-3 would follow its spacious legroom in economy, free WiFi, live TV, and Mint.
Woah, easy there Mr. Bumble (Oliver Twist). Would you prefer debtors prisons? No.
Disagree. The president sees NK as a business friend because of their FL DNA. With B6 and its northeast affiliation, not so much. Regardless, no airline deserves a bailout. Not a one. If anyone disagrees, then let’s go full bore back to pre-deregulation. High airfares and a hot lunch on a 90-minute midday flight to Chicago, and re-establish the CAB while we’re at it.
Why would you believe the no bk in 2026 drivel, Ben? Many of us have worked for companies who knowingly lie through their teeth, both to the public and in private in-company “Town Halls”. They live in the moment to secure C-Suite and board of director security and wealth.
There is another possibility that you did not consider. The airline could consider restructuring it's operations and business model. For a long time many have referred to them as a low cost airline but I have never found them to be low cost.