JetBlue Bonds Fall Deeper Into Distress as Short-Sellers Pile In

Markets Bonds Contact us:Provide news feedback or report an error Confidential tip?Send a tip to our reporters Site feedback:Take our Survey By Josie Reich and Sri Taylor October 8, 2026 at 4:43 PM UTC Takeaways by Bloomberg AI JetBlue Airways Corp. debt fell to the lowest levels since it was issued more than two years ago, as the struggling airline burns through cash while short sellers circle its shares. The airline’s $2 billion bond with a 2031 maturity fell to 72 cents on the dollar on Thursday, the lowest since August 2024, according to Trace pricing data. The bonds, which are backed by collateral tied to the company’s loyalty programs, saw their yield spread relative to the benchmark blowing past 1,000 basis points over the past month. This is a level that typically indicates distress in the market for junk-rated debt.