The man who founded JetBlue in 1999 and stepped aside in 2008 now says his old airline is in serious trouble.
In a talk with pilots at Breeze Airways last week, the low-cost carrier he launched after leaving JetBlue, David Neeleman warned that bankruptcy could be on the horizon.
A recording of the conversation quickly made its rounds on X (formerly Twitter).
“JetBlue’s in a really tough spot. I think I told you this last week, but when Jamie Baker, who is an analyst for JP Morgan, came out with his estimates for all the airlines based on $4.50 fuel, it showed JetBlue losing $1.3 billion this year. That would probably put them into bankruptcy, I would assume,” Neeleman said.
Breaking down the balance sheet
The numbers seem to back up the pessimism. If the aforementioned projected losses hit, JetBlue’s debt would balloon to around $9 billion, effectively dragging interest payments up from $600 million to roughly $800 million a year.
According to Neeleman, he’s been asking around about potential buyers, and the feedback isn’t good. He claimed United is too worried about the debt load to bite, while Southwest and Alaska Air have both passed on a deal. “I want nothing but the best for JetBlue,” he added, “but they’re in a very tough position right now.”
JetBlue has had a rough few years. The Spirit Airlines merger that might have changed its trajectory got blocked by regulators in 2024. Since then, JetBlue has been cutting routes and trying to get its cost structure under control. Fuel at $4.50 a gallon on top of existing debt doesn’t leave much room.
Neeleman left JetBlue’s CEO role in 2007 after a high-profile operational meltdown during a Valentine’s Day ice storm that stranded thousands of passengers. He’s been building Breeze since then, a smaller carrier focused on underserved routes.
Sources: Investing, X (formerly Twitter)