A confluence of fuel price shocks and longstanding profitability issues is putting intense financial pressure on the New York-based leisure carrier.
JetBlue Airways has reached an agreement with affiliates of aircraft lessor Sky Leasing to secure up to $500 million in financing secured by the airline’s jets.
The New York-based carrier disclosed the financial arrangement on 17 April, saying the company will borrow the money through separate loans, each backed by one of 22 aircraft.
The aircraft JetBlue will post as collateral include Airbus A220s and A320s.
The company has secured the funds at a difficult time for US and global airlines, which have in recent weeks seen margins crumble as fuel prices doubled following the start of the USA and Israel’s war against Iran.
On 16 April, media outlets reported that JetBlue founder David Neeleman, currently the chief executive of Breeze Airways, had warned that JetBlue could face severe financial trouble later this year if fuel prices remain elevated.
JetBlue says the 22 new loans backed by its jets will carry interest rates in the 6-6.75% range and mature between 2033 and 2037.
Even before the Iran war and resulting closure of the Strait of Hormuz, JetBlue and other US low-cost airlines had faced financial struggles due to factors including an excess capacity of discount airline seats.
JetBlue ended 2025 with cash and cash equivalents valued at $1.9 billion and another $1.7 billion worth of securities.
In March, as economic trouble surfaced, JetBlue disclosed it would pull back its capacity. Rumours have surfaced that the leisure carrier is exploring potential acquisition scenarios with rival US airlines, though Neeleman cautions that JetBlue’s heavy debt load could make it an unappealing tie-up partner for the likes of Alaska Air Group, Southwest Airlines and United Airlines.
JetBlue will hold its first-quarter earnings call on 28 April.
FlightGlobal airlines reporter Howard Hardee contributed to this report.
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