JetBlue Airways' (JBLU) fleet modernization and debt reduction efforts are commendable. However, high operating costs hurt the company's bottom line.
They are called zombies, companies so laden with debt that they are just stumbling by on the brink of survival, barely able to pay even the interest on their loans and often just a bad business hit away from dying off for good. An Associated Press analysis found their numbers have soared to nearly 7,000 publicly traded companies around the world — 2,000 in the United States alone — whiplashed by years of piling up cheap debt followed by stubborn inflation that has pushed borrowing costs to decade highs. “They’re going to get crushed,” Valens Securities Managing Director Robert Spivey said of the weakest zombies.
Upbeat air travel demand leads JetBlue (JBLU) to issue an improved revenue view for second-quarter 2024 and boosts Ryanair's (RYAAY) May traffic.