By Ira – JBizNews Desk

A group of JetBlue Airways creditors has brought in financial and legal advisers as pressure on the airline’s debt deepens, according to separate reports by The Wall Street Journal and Bloomberg. The move adds a new creditor-level development to the selloff in the carrier’s shares and bonds.

The Journal reported Friday that senior creditors are working with financial adviser PJT Partners and law firm Akin. Bloomberg separately reported that creditors holding some of JetBlue’s $2 billion in bonds due in 2031 and a $742 million first-lien loan are working with Akin, citing people familiar with the discussions.

The reports describe advisers working for creditors, not an announced bankruptcy filing by JetBlue. They also do not announce a suspension of flights.

The airline’s 2031 notes fell to about 42 cents on the dollar Thursday before recovering into the mid-40s Friday, the Journal reported, citing market participants and Financial Industry Regulatory Authority data. The notes had traded near 80 cents earlier in October, according to that report.

JetBlue shares closed Friday at $2.62, down 0.94% on the day and about 42% for the year, Reuters reported in a story published by CNBC on Sunday. The report said higher jet-fuel expenses linked to the Iran war have squeezed U.S. airline margins despite higher fares and continued travel demand.

The carrier is pursuing JetForward, its financial and operational overhaul, which includes cost reductions and expanded premium offerings. In a statement to Reuters, JetBlue said: “JetBlue remains confident in its JetForward strategy and the progress being made toward returning to sustained profitability.”

Reuters reported that JetBlue had $1.66 billion in cash and cash equivalents at June 30, alongside $8.5 billion in debt and finance-lease obligations, citing company filings. Those figures describe its midyear position, not its cash balance today.

PJT did not immediately respond to Reuters’ request for comment.

JBizNews Desk | New York

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