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.

I don't think we're in BK this fall, seems wayyyyy too soon. I think we start burning the furniture if we don't show positive signs of recovering the airline and moving towards the premium product goals we've set. If we were going to go BK by the fall we'd be in way worse shape right now.

Not sure if you've noticed, but the furniture is smoldering already. DC gates, delivery slots, JFK slots, selling XLRS, etc

The similar deal of mortgaging aircraft two years ago. Just adding to your list.

Yeah, you haven’t been paying attention. JetBlue has been burning the furniture for the past 6 years. That little talking point about not earning a profit since 2019? We’re still here because we’re borrowing money to keep the lights on. And now we’re borrowing even more money to both keep the lights on, and to make payments on our earlier loans. The textbook definition of burning furniture to heat the house.

Of course we’re having to burn the furniture faster and faster, so to some it may seem like we weren’t burning it before now.

In the end, It’s not about the amount of money your company ****ed away but the amount of lift awards you walked away with.

Cults don’t survive. Now, if the board replaced management with a competent group Jetbkue would have a chance.

Well there we have it, no BK in 2026 according to JG

https://share.google/Q9iOMMIQQLGsJCU86

Was the 500m leveraged against our airplanes ever mentioned anywhere prior to today? Just trying to keep up with the news as it comes out. I can’t say I got a good feeling about her email today.

There are no good feelings to be had about a stand-alone JetBlue, so your takeaway is correct.

Yes, this was part of a pre-announced lan several months ago to pay off the $800m April 2026 debt and then raise $500m cash in order to maintain liquidity. I think we need to maintain a certain amount of cash at all times and this helps give us a buffer.

Addressed a lot of rumors in that email except zero mention of jetblue "not merging".

Addressed it by not addressing it…

So you're sayin' there's a chance...

The lack of a denial of M&A activity is more significant than the denial of declaring BK this year.

Same person that said “Covid isn’t having a meaningful impact.”

She doesn’t know but she had to say something. Doug Parker once said that AA would never lose money again. They can say whatever they want.

Curious to see what is or isn't allowed to be talked about on these upcoming earnings calls, united is tomorrow. Should be pretty telling if there is any real noise there or not. I'm sure one of the analysts will ask about consolidation.

Kirby is always vocal, should be a good listen

I think he said no airline will every lose money again.

Yeah....no. He could envision where AA wouldn't lose money again. Just checked AA's net income and except for 2020 and 2021 AA's reported a net income (GAAP) every since he made his comment back in Feb 2018. That's actually very impressive. Not counting the 2020-2021 Covid impact the other 7 years, sometimes barely, have had positive net income earnings (GAAP).

My wife looked at me funny when I told her that I had good news, that I collateraled the house to continue to fund my betting habits. Now if that dealer just starts handing me blackjacks this will all be worth it.

I wonder if and or when b6 alpa chimes in with a vote of no confidence in current ‘leadership’. Are we going to wait till we are in NK territory?

Just so you guys know Neeleman owns 5% of JetBlue. So him making this statement as a shareholder bends the lens a little more towards pressuring the company rather than predicting the future from an outsider.

Do you have a source for him owning 5%? I wasn’t aware he still held any shares

Thats hilarious. The union that champions “we’ll get them next time” is going to take a stand?

Unfortunately it’s from celebrity net worth so not reliable. BUT it’s under 5% so he won’t show up on a form. So he could still be holding since technically it’s 4.86%

And Shoresy promised Nat that the Sudbury Blueberry Bulldogs would never lose again, but they did, in fact, drop the final to the Soo after a 20-0 run.

You’re applesauce, bud!

That's tim-bits hockey, give your balls a tug.

Not every comment probably needs a reply.

https://www.pymnts.com/travel-paymen...g-allegations/

Apparently the government’s going to give Spirit 500M in exchange for a “significant stake.”

Cool, so we’re commies now. First US state-owned airline, and it’s Spirit.

On the other hand, no matter how freaking awful your service, management, business plan, etc… it appears it’s literally impossible to go out of business now?