Vladimir Galkin, the second-largest shareholder in JetBlue Airways (B6, New York JFK), is considering selling his nearly 10% stake in the carrier if the company’s cost-cutting plan fails to turn around its performance, Reuters reported.
Galkin, living in Miami, invested over USD200 million in JetBlue between February and August 2024. According to a September 2024 filing to the US Securities and Exchange Commission, he owned over 34.6 million shares, representing 9.98% of the company at that time.
However, the 43% year-to-date decline in JetBlue’s share price has left Galkin in a losing position, Reuters reported. "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,” he said, adding that selling in one year was not a set deadline as he is hopeful JetBlue will start making money "sooner rather than later."
JetBlue introduced its JetForward business plan in 2024, which includes a strategy to boost profits and deliver up to USD900 million in earnings before interest and taxes in 2027. But the current soft travel demand environment, trade wars, and economic uncertainty have impacted the carrier, with chief executive Joana Geraghty confirming that more cost-reducing measures are expected in the near term.
In parallel, the company has entered into a new partnership agreement with United Airlines, which has raised some eyebrows in the US aviation industry, with Spirit Airlines urging the Department of Transportation to look deeper into the alliance.
ch-aviation reached out to JetBlue for comment, but the carrier was not immediately available.
