JetBlue Shares Hit Record Low, Bonds Fall Into Distressed Territory

In October 2026, JetBlue's share price continued to decline, and market speculation about the company filing for Chapter 11 bankruptcy protection intensified. Earlier reports said the company's shares fell to $2.27 on Monday, down more than 20% in a week, and could set a record closing low before third-quarter results were released on Tuesday; its bonds maturing before 2031 fell to 40 cents on the dollar last week, compared with about 80 cents earlier this month; some senior creditors had engaged PJT Partners and law firm Akin Gump Strauss to discuss restructuring matters. Subsequent reports said JetBlue cut its 2026 outlook and its third-quarter loss widened, but said it still expected to return to sustained profitability in 2027; the company's shares closed at $2.37 on Monday, down more than 20% over the past week, and rose more than 10% after hours after results were released a day early; JetBlue reiterated its long-term guidance of $1 earnings per share and positive free cash flow in 2028, and said fourth-quarter unit costs excluding fuel would decline significantly. The latest reports said the third-quarter net loss widened to $257 million from $143 million a year earlier, total revenue rose 21% year on year to more than $2.8 billion, average fare rose from $205.67 to $245.11, revenue per available seat mile rose 18% year on year to 16.28 cents, and the company said it had recovered 87% of the increase in fuel costs; CEO Joanna Geraghty told Reuters the company was not negotiating with creditors and was not considering restructuring, after The Wall Street Journal reported that a group of creditors had engaged restructuring advisers. The CEO also reiterated that the company could still achieve its long-term profitability targets, saying there was a "major disconnect" between the bond market narrative and financial performance, and the company confirmed its targets of achieving operating profit in 2027 and earnings per share of $1 in 2028, while planning to increase growth in Fort Lauderdale and further cut capacity to offset fourth-quarter fuel costs of $4.64 per gallon.