JetBlue’s future just got a very blunt reality check from one of the smartest CEOs in the business…who also happens to be the founder of JetBlue.
Even United Does Not Want JetBlue, Per David Neeleman
Many have wondered whether the maneuvering by United Airlines CEO Scott Kirby at the White House over a merger with American Arlines was a strategic chess move to smooth the way for United’s acquisition of JetBlue. The theory goes that because a deal with JetBlue is so small in comparison to one with American, which is now being seriously debated by analysts and investors, it would be less likely to face regulatory scrutiny.
But JetBlue’s balance sheet is seriously flawed, leading many to question the upside of such a merger for United.
In an internal interview with Breeze Airways pilots, David Neeleman, the founder of JetBlue and current CEO of Breeze, offered a remarkably candid assessment of JetBlue’s situation. More importantly, he poured cold water on the idea that United is waiting in the wings to acquire it.
“JetBlue’s in a really tough spot. They really are….When Jamie Baker, who’s an analyst for JP Morgan, came out with his estimates for all the airlines based on 450 fuel—two bucks—it showed JetBlue losing $1.3B this year. That would probably put them into bankruptcy, I assume. That would also take them to $9B in debt. Today, they are paying over $600M in interest on that debt and that would take it up closer to $800M in interest. That would be tough.
“There was some thought that United was just doing that with American to clear the decks to buy JetBlue but I know it from a pretty good source in United that they are very concerned about JetBlue’s debt and they are not really interesting in taking that on, so I think JetBlue has very few options. I don’t think Southwest is interested in them. I know Alaska is not. United is concerned about the debt so obviously if Spirit went under and fuel went back under 250 you know, they were just with their nose above the water. They’ve doubled down in Ft Lauderdale so they really want to make that work.”
JonNYC first shared the video, which you can watch below:
There are two key takeaways here.
First, the debt load is the problem, which is hardly breaking news. $9 billion in debt with interest approaching $800 million annually is not something another airline casually absorbs. Especially not one like United that has spent years trying to clean up its own balance sheet.
Second, United does not necessarily need to buy JetBlue to get what it wants. If JetBlue weakens further or restructures, the most valuable asset is not the airline itself. It is access, slots, and gates…especially at JFK.
And those do not necessarily require an acquisition if JetBlue’s woes continue. United can simply wait.
Neeleman’s comments confirm what many suspected but few inside the industry were willing to say publicly: JetBlue is not an attractive takeover target right now until it sheds its debt.
Of course Neeleman still has a soft spot for the carrier he founded:
“I flew on JetBlue over the weekend…we went on a little anniversary trip. Operation was great. People were really nice. And so, I want nothing but the best for JetBlue but they’re in a really tough, tough position right now.”
But “tough position” may be quite an understatement….I hope he’s wrong, but his very clearly-articulated statement helps point out the tremendous problem JetBlue is facing now. It may well be that a trip to bankruptcy court may be the only way to make JetBlue attractive enough for another carrier to buy it.
image: Airbus
These public comments seem irresponsible (at best), as he seems to be sharing insider infomation.
He owns 4% of jetBlue, but hasn’t been directly involved since 2009 (Chairman), 2008 (CEO). That said, he did found the airline in 2000, and is currently leading Breeze, which is technically a competitor… so… I donno if I trust him. After all, no one is prosecuting insider trading these days anyway, sadly.
Note that on May 10, 2007, David Neeleman was replaced by David Barger as CEO of JetBlue and, on May 21, 2008, he was replaced as chairman of the board by Joel Peterson.
JetBlue’s current financial situation largely validates David Neeleman’s related comments. As of early 2026, the airline is grappling with a $9.4 billion debt load and a high debt-to-equity ratio of 4.15. While its JetForward transformation aims for breakeven operating profitability in 2026, the company has not posted an annual net profit since 2019. While many analysts believe a merger might be its only option, JetBlue’s substantial financial liabilities, including its outstanding capital commitments of over $1 billion, reduce its immediate appeal as a takeover target.
With that kind of debt nobody is going to come charging in to buy them. I’m still hoping that Alaska comes courting if B6 can shed some debt.
As of March/April 2026, reports suggest AS is a potential buyer for JetBlue, with B6 exploring a sale to suitors that also include UA and WN. A merger could provide AS with a strong East Coast presence, but analysts cite significant challenges, including AS’s recent acquisition of HA, high debt, and potential regulatory scrutiny.
The failed acquisition of NK was certainly not good for B6.
Let’s remember that on February 14, 2007, Mother Nature dealt a cruel blow to both JetBlue and its founder and then-CEO, David Neeleman. What would B6 be like today if it hadn’t experienced that terrible crisis?
If Alaska acquires jetBlue, I believe that within a decade, Alaska could be the dominant American airlines in transcontinental and maybe even international operations. I say a decade because after the HA acquisition, they’ll need to sort out 2 companies’ debts.