Rising jet fuel prices, caused by the disruption of Middle East oil since the U.S.-Iran war began in February, has led to a significant increase in airfares for the holidays as airlines, such as JetBlue Airways, pass higher costs onto passengers.
I’m not looking forward to booking a cross-country flight to Florida in December, as year-end round-trip airfares are up about 23% compared to 2025, according to the Hopper Holiday Travel Index.
Those rising fuel costs, along with high amounts of debt obligations, have forced several airlines to file for bankruptcy protection this year, and in certain cases, close their businesses.
European airlines file bankruptcy
European airlines, including Spain’s Volotea, Swiss charter airline Air Mountain, Latvian carrier AirBaltic, and Romanian airlines AnimaWings and Dan Air sought bankruptcy protection in their home countries in 2026, TheStreet‘s Veronika Bondarenko reported.
In the U.S., after filing for Chapter 11 bankruptcy twice in 2024 and 2025, Dania Beach, Fla.-based Spirit Airlines failed to complete a merger and could not find financing or an investor to keep its doors open. The airline ceased operations permanently in May 2026.
And now JetBlue Airways’ creditors are taking a closer look at the company’s debt obligations with help from <a href="https://bitcomme.com/dividend-appeal-could-reshape-the-case-for-cincinnati-financial-stock-cinf/” title=”Dividend Appeal Could Reshape The Case For Cincinnati Financial Stock (CINF)”>financial restructuring professionals.
JetBlue creditors hire advisers
JetBlue Airways’ senior creditors have hired restructuring adviser PJT Partners. The creditors also signed up financial restructuring law firm Akin Gump Strauss Hauer & Feld LLP, which represented the ad hoc group of secured bondholders in the first Spirit Airlines Chapter 11 bankruptcy case.
The senior creditors hired the financial adviser and law firm as JetBlue suffers from cash burn and elevated oil prices, people familiar with the situation told the Wall Street Journal.
JetBlue’s CEO Joanna Geraghty told employees in April 2026 that the airline was not considering bankruptcy in 2026 but the company has not commented on its creditors’ adviser hirings
JetBlue’s $2 billion in senior notes due in 2031 declined to as low as 42 cents on the dollar on Oct. 22, 2026, according to the Financial Industry Regulatory Authority after trading at 80 cents on the dollar earlier in October.
The airline listed over $8.47 billion in total debt as of June 30, 2026, which is about $20 million lower than the total as of Dec. 31, 2025, according to JetBlue’s second quarter 2026 financial results.
