JetBlue seems to be inching ever-closer to a Chapter 11 bankruptcy protection filing. The airline hasn’t turned a profit since before the pandemic, and it seems like such a filing is inevitable, as debt will need to be restructured. The company’s CEO has promised it won’t happen in 2026, though I’d be shocked if it doesn’t happen in 2027. Along those lines, there’s a noteworthy update, as clearly there’s a recent vibe shift among creditors…

JetBlue creditors hire advisers as stock & bonds sink

JetBlue will be fine, but a restructuring is necessary

Bottom line

The Wall Street Journal reports how a group of senior creditors to JetBlue is working with a financial adviser and law firm, as the airline grapples with cash burn and increased jet fuel prices. JetBlue’s stock is trading at new lows in recent days, and closed Friday at $2.62, well under 50% of where it was trading under three months ago.

JetBlue’s stock price over the past year

Not only that, but bonds are trading down as well.…