JetBlue Creditors Retain PJT Partners and Akin Gump on $2.7 Billion Claims as Bonds Trade at 44 Cents

The blocked $3.8 billion Spirit acquisition, halted by Judge William Young in January 2024 on DOJ antitrust grounds, removed the low-cost carrier's planned capacity absorption. Spirit ceased operations in 2025, tightening budget-fare supply. JetBlue now reports $2 billion cash against $8.5 billion total debt and accelerating fuel costs that parallel Southwest's 22% EPS cut and United's $4.84 billion Q3 fuel bill. S&P notes sufficient liquidity but flags rising debt-service pressure. Creditor coordination on the 2031 notes and secured facility signals preparation for covenant relief or exchange offers rather than immediate default. The pattern mirrors prior airline cycles where fuel spikes and blocked consolidation precede balance-sheet restructuring. Primary records show the DOJ's March 2023 complaint focused on fare increases for 1.6 million annual passengers on 100 overlapping routes. Post-block outcomes include Spirit's exit and JetBlue's equity value halving since October. No new capacity commitments have replaced the lost Spirit fleet. Next steps hinge on fourth-quarter results and any fuel-hedge adjustments. Creditors' adviser retention typically precedes formal negotiations within 60-90 days if bond prices remain below 50 cents.