Fitch Ratings has downgraded JetBlue Airways to ‘CCC+’ from ‘B-’, citing continued operating losses, rising fuel costs and a longer-than-expected path to margin recovery.
The agency said sharply higher jet fuel prices, the airline’s second-largest operating expense, alongside persistently elevated leverage and negative free cash flow were key drivers of the downgrade. Fitch expects JetBlue’s credit metrics to remain outside its previous downgrade sensitivities for at least 12 to 18 months, with profitability targets delayed by one to two years.
JetBlue is expected to remain free cash flow negative in the near term, with outflows exceeding $500m in 2026 before moderating in 2027 and potentially approaching breakeven in 2028. Despite this, Fitch said the airline maintains a sufficient liquidity position, supported by $2.2bn in cash and short-term investments at the end of 2025 and approximately $6.5bn in unencumbered assets. Debt repayments of $755m due in 2026 were described as manageable, with no significant maturities until 2029.
The downgrade also reflects structural challenges facing low-cost carriers. Fitch said JetBlue’s profitability and leverage compare unfavourably with larger network peers such as American Airlines and United Airlines, while remaining weaker than Allegiant Air among leisure-focused carriers.
In addition to the corporate rating action, Fitch downgraded JetBlue’s loyalty programme debt and senior secured revolver to ‘B’ from ‘B+’, and lowered ratings on subordinated enhanced equipment trust certificates, while affirming senior tranches supported by strong collateral and over-collateralisation.