JetBlue headed for bankruptcy
 

Not saying David Neeleman (founder of JetBlue Airways) has any real insight into the current balance sheet—but his comments come at a pretty interesting time.

With everything going on right now, especially fuel prices spiking due to the Iran situation, we’re seeing real pressure across the industry. Case in point: Spirit Airlines is once again flirting with the idea of pulling the plug because investors don’t see a viable path forward with fuel where it is.

Fuel has basically doubled in a short period, and for airlines without strong margins or pricing power, that’s a serious problem.

So while Neeleman’s comments might sound dramatic, they’re happening in a broader environment where even established carriers are under pressure.

https://www.investing.com/news/stock...y-93CH-4617418

I don’t always go 16 years without posting on APC, but when I do, I start a thread that says an airline is headed for bankruptcy.

shouldn’t he worry about breeze? Guess A220s don’t use fuel.

I read the article yesterday. With his background in the industry and being the creator of more than one successful airline I would think his comments hold a little weight. He’s not some random kid in a basement playing on APC. I would imagine these high fuel prices are going to hurt all the airlines. Some airlines are in a better financial position to weather the storm than others. The ones already in a bad position like Spirt are really going to have a hard time. Hopefully fuel prices come back down soon and nobody goes out of business. I don’t want to see anyone lose their jobs. Good luck to everyone.

Oh cool, another thread talking about the same thing as all the other active threads.

Nah the other ones are merger talk, this one is BK. Which seems more likely now.

https/www.tradingview.com/news/tradingview:dc25f11a1e781:0-jetblue-airways-secures-500m-aircraft-backed-financing-for-a320-a220-fleet/

fired from every airline he started. If you’ve ever met hey you realize how full of sh-t he is when it comes to running an airline and understanding the economics outside of raising capitol to start the project.

jetblue is in bad shape, no doubt. Neelemans predictions will settle similarly to his others regarding legacies going under, $40 barrels of oil and many more.

I don’t think this changes anything… I still think BK this Fall. But this $500 million loan, was talked about months before oil prices, Iran, etc. It’s been in the works for a while.

I have long said that Neeleman doesn’t have a viable business plan in any of his airlines that doesn’t include discount labor.

Didnt Azul declare bankruptcy last year? I wouldn’t call that successful and as someone else pointed out, he has flawed business models that are purely based on not paying labor a standard market wage thus being able to undercut other carriers.