JetBlue’s creditors are hiring “restructuring advisers” as its debt trades at distressed prices. That is troubling news for an airline trying to turn itself around, but it could also create a remarkable opportunity for United Airlines. As much as I personally do not want to see such a merger, I’m increasingly convinced that United Airlines CEO Scott Kirby is waiting like a crouching tiger to pounce on JetBlue’s position at New York JFK and in South Florida…provided he can acquire it on terms that make sense.
Hiring advisers does not establish that a bankruptcy filing is imminent, but it certainly signals concern about repayment, and the bond prices suggest lenders are taking that risk seriously. JetBlue told the newspaper it remains focused on strengthening revenue and building a more profitable business. Its third-quarter earnings call on Tuesday should provide a clearer picture.
United already has a path back to JFK. Under the airlines’ Blue Sky agreement, JetBlue will provide access to slots for up to seven daily round-trip United flights beginning in 2027. But a limited return is quite different from acquiring a substantial presence there.
A great solo travel tip spotted this week on Live and Let's Fly.
