David Neeleman, founder of JetBlue Airways (NASDAQ:JBLU), said the airline may be heading toward bankruptcy, speaking during a discussion with pilots at Breeze Airways—his most recent aviation venture—on Thursday.
Neeleman, a long-time airline entrepreneur who launched JetBlue in 1999 and led the company as CEO until 2007, outlined concerns about the carrier’s financial outlook in remarks that later circulated on X.
“JetBlue’s in a really tough spot. I think I told you this last week, but when Jamie Baker, who is an analyst for JP Morgan, came out with his estimates for all the airlines based on $4.50 fuel, it showed JetBlue losing $1.3 billion this year. That would probably put them into bankruptcy, I would assume,” Neeleman said.
He added that losses of that scale could push the airline’s debt to around $9 billion, up from current annual interest costs of more than $600 million to roughly $800 million.
Neeleman also said that United Airlines has concerns over JetBlue’s debt burden and is not considering an acquisition. He noted that Southwest Airlines and Alaska Air Group have similarly shown no interest in pursuing a deal.
“I want nothing but the best for JetBlue, but they’re in a very tough position right now,” Neeleman said.
Neeleman has not been involved in JetBlue’s operations for nearly 18 years, having stepped down as CEO in May 2007 and later leaving his role as chairman in May 2008.