A group of senior JetBlue Airways creditors has hired restructuring adviser PJT Partners and law firm Akin as the carrier burns cash under high fuel prices, The Wall Street Journal reported. The move signals lenders fear they may not be repaid in full or on time.

The pressure shows in the numbers. JetBlue's $2 billion of notes due 2031 sank to 42 cents on the dollar on Thursday and traded in the mid-40s on Friday, according to market participants and Finra data cited by the Journal. Earlier in October, the same notes changed hands at roughly 80 cents — meaning bondholders have lost about half their paper value in a matter of weeks. The drop followed a recent bondholder call.

How bad is the equity picture?

JetBlue stock closed Friday at $2.62, down 0.94% on the day. Shares have fallen 42% this year and lost more than half their value since the start of August.

The company pushed back on any distress narrative. "JetBlue remains confident in its JetForward strategy and the progress being made toward returning to sustained profitability," the airline said in an emailed statement, according to Reuters. A JetBlue representative told the Journal that management's focus is on boosting revenue and building a business that earns more. JetBlue plans to detail its progress and financial outlook when it hosts its third-quarter results call on Tuesday.

Why are creditors moving now?

Creditors bring in restructuring advisers once they fear a borrower may not return their money in full or on time, the Journal noted. Investor wariness toward airline debt has intensified since Spirit Airlines shut down operations this year after repeated bankruptcy filings.

JetBlue's balance sheet frames the stakes. As of June 30, the airline held $1.66 billion of cash and cash equivalents, set against $8.5 billion of borrowings and finance lease commitments, according to its filings — roughly five dollars of obligations for every dollar of cash on hand.

Much of that debt is secured by JetBlue's aircraft fleet and its TrueBlue loyalty program. Close to two-thirds of the company's assets, spanning property, equipment and intangibles, have been pledged as security for lenders, quarterly filings show.

What are the risks ahead?

Some market participants worry that adding more debt could leave JetBlue little room to maneuver if its turnaround fails, the Journal reported. The airline also faces possible pressure from credit-card processors, which may demand carriers hold back collateral should conditions deteriorate. JetBlue said it was under no such obligation as of June 30.

The operating backdrop is worsening. Higher jet fuel costs tied to the Iran war have squeezed margins across U.S. airlines even as fares rose and travelers kept flying at a consistent pace, Reuters reported.

How did the first quarter go?

JetBlue reported a first-quarter net loss of $319 million in April, wider than the $208 million loss a year earlier — a 53% deterioration year over year. Jet fuel cost 15.2% more per gallon than in the same period last year. The company ended the quarter with $2.4 billion in liquidity.

The airline also arranged $500 million of financing secured by aircraft in April. By June 30, the full amount had been tapped, according to the Journal — an indication of how quickly the carrier is consuming available funding.

Tuesday's earnings call now doubles as a credibility test.