JetBlue Airways Chief Executive Joanna Geraghty addressed bondholders on Tuesday, highlighting what she described as a "significant disconnect" between the airline’s recent financial performance and the negative sentiment prevailing in the bond market. Her remarks come amid a sharp drop in the value of some of JetBlue’s secured bonds, which recently declined from 80 cents on the dollar to as low as 40 cents.

The airline, known for its position as a mid-tier discount carrier, has been feeling pressure from rising fuel costs. During the most recent quarter, fuel expenses increased by 61 percent year-over-year, contributing to a reported loss and fueling investor concerns over JetBlue’s $8.4 billion debt load. Bond investors have expressed skepticism over the company’s ability to sustain such levels of debt under the current operating environment.

In contrast to the bond market’s pessimism, Geraghty pointed to several positive indicators within JetBlue’s operations. The airline saw an 18 percent increase in revenue per available seat mile in the latest quarter, a key metric in the industry. She noted that customers have been willing to absorb higher fares, supported by JetBlue’s introduction of first-class cabins and growth at its Fort Lauderdale hub in Florida. Looking ahead, Geraghty suggested the airline could potentially reach $1 in annual earnings per share by 2028—well above the 32 cents per share predicted by current analyst consensus.

To reassure creditors, Geraghty emphasized JetBlue’s $7 billion in unencumbered assets, including owned aircraft, which could serve as collateral for additional financing if needed. While bankruptcy could reduce the company’s debt burden, it would likely erase shareholder value, a scenario Geraghty dismissed given her belief in the strength of underlying business trends. She also expressed optimism that fuel prices may decline, alleviating one of the main cost pressures.

JetBlue is pursuing a strategy similar to those of larger U.S. carriers such as Delta Air Lines, American Airlines, and United Airlines by increasing premium cabins on flights to boost profitability. While directly appealing to bondholders is uncommon for airline executives—since lenders focus primarily on principal repayment and interest payments, rather than market sentiment—Geraghty’s remarks serve to provide shareholders with a more hopeful outlook amid the ongoing challenges facing the sector.