Raymond James analyst Savanthi Syth downgraded JetBlue Airways to Underperform from Market Perform. Syth suggests Chapter 11 restructuring could be a prudent path for the carrier to manage its obligations.
JetBlue faces a significant debt burden that constrains its financial flexibility. The company faces a $1.8 billion balloon payment. This major debt obligation is due in 2029.
The analyst notes that JetBlue may benefit from the potential demise of Spirit Airlines. Convertible debt with a conversion price near current stock levels limits the stock's upside potential.
Restructuring through bankruptcy could create a more valuable long-term strategic asset. Raymond James does not anticipate immediate liquidity issues through 2026.