JetBlue's $2 Billion Frequent Flyer Debt Sinks To 72 Cents On The Dollar -- How Close Is Bankruptcy?

JetBlue’s $2 billion in bonds backed by its TrueBlue frequent flyer program has fallen to 72 cents on the dollar, signaling heightened investor concern. The article says the decline reflects demands for a much higher return to finance what it calls one of the airline’s most valuable assets, with the bond due dates extending into 2029 for major payments. The 2031 bonds hit their lowest price since issuance in August 2024, and the spread over benchmark yields reportedly passed 10 percentage points. The report also notes rising shorting activity and cites a June 30 balance sheet showing about $2.2 billion in unrestricted cash and investments, plus an undrawn $600 million credit line against $8.5 billion in debt and finance leases.