JetBlue’s No. 2 Shareholder May Exit Amid Losses, Cost Cuts

Vladimir Galkin, the second-largest shareholder in JetBlue Airways, is considering selling his nearly 10% stake if the airline’s cost-cutting strategy fails to improve its financial performance, according to a report by Reuters.
Galkin, a Miami-based investor, put over USD200 million into JetBlue between February and August 2024. As of a September 2024 SEC filing, he held over 34.6 million shares, amounting to a 9.98% stake in the airline.
JetBlue’s share price has declined 43% year-to-date, putting Galkin’s investment in a loss position. “I am underwater a little bit and just going to have to hold on to it,” he said, adding that he may reassess in a year, though he remains hopeful JetBlue will return to profitability sooner.
JetBlue launched its JetForward transformation plan in 2024, targeting USD900 million in earnings before interest and taxes by 2027. However, weak travel demand, trade tensions, and broader economic uncertainty have hindered progress. CEO Joanna Geraghty recently confirmed that further cost-saving measures are expected in the near term.
Amid these challenges, JetBlue has entered into a new strategic partnership with United Airlines. The deal includes shared slots and scheduling coordination at key airports. While the airlines deny plans for a merger, the alliance has drawn scrutiny, with Spirit Airlines formally requesting that the U.S. Department of Transportation review the agreement for potential anti-competitive implications.
Galkin’s potential exit adds pressure on JetBlue as it seeks to navigate financial recovery and maintain investor confidence.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com