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JetBlue Investor Signals Possible Exit Amid Challenges

JetBlue’s Second-Largest Investor Considers Exit Amid Ongoing Struggles
JetBlue Airways is facing significant challenges as its second-largest investor, Vladimir Galkin, contemplates selling his nearly 10% stake in the airline should its turnaround efforts fail to produce results. Galkin, who gained prominence during the 2021 GameStop “meme stock” rally, has invested over $200 million in JetBlue since early 2024. He currently holds approximately 35 million shares, valued at around $212 million.
Financial Pressures and Strategic Responses
The airline is contending with weakened travel demand and increasing financial pressures. In April, JetBlue withdrew its full-year earnings forecast, citing a low probability of breaking even in 2025. This announcement led to a 2% decline in the company’s stock price, which has already fallen 43% year-to-date. This performance significantly lags behind competitors such as Delta and United, whose shares have declined by 17% and 18%, respectively.
In response, JetBlue has initiated additional cost-cutting measures aimed at preserving cash flow and restoring profitability. The company’s JetForward initiative seeks to achieve up to $900 million in profit improvements by 2027. Galkin expressed cautious optimism about these efforts, referencing a recent internal memo that outlined further cost reductions. Nevertheless, he stressed that the upcoming quarters will be critical in assessing the effectiveness of the strategy. “I am underwater a little bit and just going to have to hold on to it. I don't want to say for as long as it takes, obviously, but maybe for another year,” Galkin told Reuters.
Governance and Future Prospects
Galkin has also advocated for reducing the size of JetBlue’s 13-member board as part of broader cost-saving initiatives. Despite his frustrations, he remains hopeful about the airline’s future, particularly in light of JetBlue’s forthcoming partnership with United Airlines. The collaboration, branded as Blue Sky, is scheduled to commence in 2027 and will enable travelers to book flights across both carriers’ platforms. JetBlue’s CEO described the decision to partner with United—after considering American and Delta—as a strategic move, especially following regulatory challenges with the Department of Justice.
Market sentiment toward JetBlue remains cautious. As of May 23, data from LSEG indicates that ten equity analysts have rated JetBlue as a “hold,” while five recommend “sell” and two “strong sell.” Notably, there are no “buy” ratings. The airline has reported profits in only two of its past nine quarters, highlighting persistent investor concerns.
As JetBlue continues to navigate a difficult operating environment and implements further cost controls, the coming quarters will be decisive in determining whether it can restore investor confidence or risk losing one of its largest shareholders.

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