JetBlue's Financial Health in Question After S&P and Moody's Downgrade, Seeks $3 Billion Backed by TrueBlue Loyalty Program.
JetBlue Airways faced downgrades from S&P and Moody's after announcing plans to raise over $3 billion in debt, mostly backed by its loyalty program, TrueBlue. S&P lowered JetBlue's rating due to concerns about its financial health, while Moody's downgraded it, citing long-term challenges in improving profitability and cash flow. The airline plans to fund through a mix of senior secured notes, term loans, and convertible notes, largely to refinance existing debt. Fitch Ratings maintained a stable outlook, though it warned of potential future downgrades if profitability doesn't improve. JetBlue's operations are also hindered by issues with Pratt & Whitney's engines, causing aircraft groundings.
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00:00It's Benzinga, and here's what's on the block.
00:02JetBlue Airways faced downgrades from S&P and Moody's after announcing plans to raise
00:07over $3 billion in debt, mostly backed by its loyalty program, TrueBlue.
00:12S&P lowered JetBlue's rating due to concerns about its financial health,
00:16while Moody's downgraded it, citing long-term challenges in improving profitability and cash
00:20flow. The airline plans to raise funds through a mix of senior secure notes,
00:25term loans, and convertible notes, largely to refinance existing debt.
00:29Fitch ratings maintain a stable outlook, though it warned of potential future downgrades if
00:34profitability doesn't improve. JetBlue's operations are also hindered by issues with
00:39Pratt & Whitney's engines causing aircraft groundings. For all things money, visit Benzinga.com.