The airline may go bankrupt as it struggles with financial woes.
JetBlue has emerged as one of the major U.S.-based airlines in recent years; however, growing debt may force it to shut down.
While Fortune reports that Spirit Airlines may not emerge from bankruptcy, JetBlue could also face a similar fate. View from the Wing reports that JetBlue’s shrinking profits have landed it in a “really tough spot,” according to its founder and former CEO, David Neeleman.
JetBlue was once known for its value offerings and comfortable seating. However, the airline has struggled to increase revenue and compete with larger airlines such as American, Delta, and United. Now, Neeleman has reportedly expressed doubts that his former company can sustain itself.
The aviation entrepreneur, who is currently overseeing his latest airline, Breeze Airways, reportedly emphasized JetBlue’s multibillion-dollar debt, which Neeleman expects will rise to $9 billion. Another billion-dollar loss year could force JetBlue into bankruptcy unless it receives a buyout from another company.
United Airlines was initially speculated to bail out JetBlue, but has reportedly backed away from the idea. Neeleman hinted that JetBlue’s hefty debt has prompted United to reconsider the potential purchase.
“I know it from a pretty good source inside the United that they’re very concerned about JetBlue’s debt. And they’re not really interested in taking that on. So I think JetBlue has very few options,” he reportedly shared with Breeze Airways pilots.
If JetBlue went bankrupt, this would leave U.S. flyers with one less option in the costlier climate of air travel. The U.S. Travel Association has already noted the rise of U.S. airfares. The association’s travel price index confirmed that fares increased by 14.9% in March compared with the same period last year.
With jet fuel surcharges prompted by the Iran War, and amid already-hiked airfares, these rising costs for flight operations could further threaten JetBlue’s future.
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Source: Black Enterprise
