JetBlue CEO dismisses creditors' concerns, bets on premium segment
The airline expects to return to profitability with enhanced comfort seating
JetBlue ended the third quarter with $2.2 billion in liquidity. The company's unencumbered asset base reached $7 billion, including $2.8 billion in aircraft and engines; the airline's total debt stood at $8.4 billion.
The airline's shares fell to a record low after reports that bondholders had hired restructuring consultants. [CEO] Geraghty stated that JetBlue has no plans to file for bankruptcy and is not working with restructuring firms. By the close of trading on Tuesday, shares had risen 40% since the beginning of the month but remain down year-to-date.
Part of the plan to return to profitability is tied to the domestic first-class offering, BlueFirst. The new seats are designed for popular tourist routes to Florida and the Caribbean. This product differs from the lie-flat seats in the Mint class, which JetBlue offers on transcontinental and European routes.
On Wednesday, the airline will unveil BlueFirst at New York's John F. Kennedy International Airport. Aircraft with the new seats and a full suite of in-flight services will begin operating flights next month, with fleet retrofitting continuing through 2027.
JetBlue last reported a profit in 2019. The company's plan calls for achieving operating profitability next year and an adjusted earnings per share of $1 in 2028. Airlines are expanding offerings with more spacious and expensive seating to offset rising costs for fuel, staff, and airport services.
