JetBlue Sees Loyalty Program as Potential Source of Collateral
- JetBlue has about $11 billion of unencumbered assets, CFO says
- Carriers turned to loyalty programs during Covid cash crunch
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JetBlue Airways Corp.’s loyalty program could be a source of collateral if the airline were to pursue financing in the debt capital markets, its chief financial officer said on Tuesday, adding that it is looking to address convertible maturities “as quickly as possible.”
JetBlue has about $11 billion of unencumbered assets — those not already pledged as collateral — that could be used for fresh financing, CFO Ursula Hurley said on an earnings call. The company’s loyalty program represents about half of that, she said.