JetBlue Airways CEO Joanna Geraghty said Tuesday that the airline is not in discussions with creditors and is not considering a debt restructuring. She told Reuters her comments were intended to address concerns about the company’s financial stability.
Speculation intensified after reports that a group of JetBlue creditors had hired restructuring advisers. Combined with the airline’s ongoing cash burn, the reports contributed to a sharp selloff in its bonds.
Geraghty said she wanted to “set the record straight,” pointing to the airline’s progress and reaffirming its goal of achieving operating profitability in 2027.
After her remarks and a more optimistic fourth-quarter forecast, JetBlue shares rallied and recovered from all-time lows. The company had $2.2 billion in liquidity at the end of September.