JetBlue seemed to be on the brink last week. Its bonds were selling off, leading to speculation about a Chapter 11 bankruptcy. Its shares were in free fall Monday.

By Tuesday, JetBlue’s third-quarter results had calmed down investors. The company reaffirmed its long-term profit targets: $1 in earnings per share in 2028 and positive free cash flow, along with sustained operating profitability in 2027. It claimed it had sufficient liquidity.

“I think there is a significant disconnect between the narrative and the bond market and what our financial results are demonstrating,” CEO Joanna Geraghty said on the earnings call.

However, there were still questions about whether JetBlue had enough cash to sustain highly volatile fuel prices or possibly another economic shock. Its projections assume that fuel costs only a little over $4 a gallon in 2027 and drops to $3 a gallon in 2028.

At the end of the third quarter, JetBlue said it had $2.2 billion in liquidity, including a $600 million undrawn revolving credit facility and $250 million in aircraft financing. JetBlue CFO Ursula Hurley said that liquidity concerns have not impacted the company’s ability to continue with turnaround initiatives or other investments.

“Absolutely not,” Hurley said.

“You got a double no on that one,” Geraghty replied.

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JetBlue Calms Investors