Debt And Credit RatingThe announcement of the debt raise was met with a negative reaction as shares fell ~21%, and both S&P and Moody's downgraded the company's credit rating to B-.
Financial PerformanceShares traded down significantly after the results given the 4Q guidance disappointment and ongoing investor concerns about whether the airline will be able to start bending the cost curve down in the years beyond 2025.
Operational ChallengesInvestors are concerned that JetBlue will struggle to regain sufficient scale in its East Coast market and are uncomfortable with the size of its debt stack.