JetBlue creditors are working with PJT Partners. That is the restructuring adviser. The WSJ reports it. Nobody hires a restructuring adviser to plan a surprise party.
The culprit is jet fuel. The Iran war sent it soaring. Airfares rose. Demand held. Margins still got crushed.
Read that again. Planes are full. Tickets cost more. Customers keep showing up. And the business still needs a bankruptcy specialist. That takes talent.
Picture the meeting. Creditors gather around a table. Someone says, "Passengers are happy to pay more." Someone else says, "Great. Call PJT."
Fuel is the one line item JetBlue cannot negotiate with. You cannot ask a barrel of kerosene to take a haircut. PJT's job is to ask the creditors instead.
Technical analysts like me looked at the chart. It points down. It has pointed down for a while. A chart does not need a war to do that, but the war helped.
Retail traders will call this a dip. They will buy it. They will tell their spouses it is a turnaround story. The spouses will nod the way you nod at a man explaining his tattoo.
The airline sells seats to people who are already on board with overpaying. The creditors are now on board with PJT. Everyone is on board with something. Nobody is on board with profit.
JetBlue sold you a blue snack and a seatback TV. The creditors are about to sell you the rest of the plane, one rivet at a time.
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