JetBlue's Largest Investor Threatens to Sell Stake Over Poor Performance

Vladimir Galkin, the second-largest investor in JetBlue Airways, is threatening to sell his nearly 10% stake in the airline if the company's cost-cutting plan and broader efforts do not reverse its performance. Galkin, who invested over $200 million in JetBlue between February and August, says he is underwater and may have to sell his shares for an extended period. JetBlue's shares have fallen 43% this year, while its competitors Delta Air Lines and United Airlines have fallen 17% and 18%, respectively.

Vladimir Galkin, the second-largest investor in JetBlue Airways, has expressed his intent to sell his nearly 10% stake in the airline if the company's cost-cutting plan and broader efforts do not reverse its performance. Galkin, who invested over $200 million in JetBlue between February and August 2024, is currently sitting on a losing position due to the airline's struggling performance. JetBlue shares have fallen 43% year-to-date, while its competitors Delta Air Lines and United Airlines have fallen 17% and 18%, respectively [1].

Galkin, who lives in Miami, Florida, told Reuters that he is "underwater a little bit" and may have to hold onto his shares for an extended period, possibly another year. He believes that JetBlue's new cost-cutting plan, JetForward, is a positive step but is skeptical about its effectiveness. Galkin is hopeful that JetBlue will return to profitability sooner rather than later and believes that Wall Street is underestimating the potential of its 2027 partnership with United Airlines [2].

JetBlue has reported profits in two of the last nine quarters. As of May 23, 2025, 10 equity analysts have a hold recommendation on the stock, with five "sell" and two "strong sell" ratings, according to LSEG data. There are no "buy" ratings. Other large JetBlue investors, including BlackRock, Fidelity, and T. Rowe Price, declined comment [1].

In response to Galkin's threat, JetBlue reiterated its commitment to cost-cutting and focusing on more profitable routes. The company's JetForward plan aims to boost profits and deliver $800 million to $900 million in earnings before interest and taxes through 2027. Galkin suggested that the company consider reducing the size of its 13-member board to cut costs, but he did not specify other potential cuts [1].

The partnership between JetBlue and United Airlines, which will allow travelers to book flights on both carriers' websites and transfer miles, has raised concerns among competitors, particularly Spirit Airlines. Spirit has filed a complaint with the Department of Transportation, alleging that the deal raises serious competition and public interest questions [3].

JetBlue's CEO, Joanna Geraghty, acknowledged the challenges ahead, stating that "the path back to profitability will take longer than we'd hoped" and that a recovery may not fully offset the ground lost this year [3].

References:
[1] https://www.investing.com/news/stock-market-news/jetblues-secondlargest-investor-will-consider-selling-stake-without-changes-4112016
[2] https://finance.yahoo.com/news/market-chatter-jetblue-apos-second-110113704.html
[3] https://www.thestreet.com/travel/spirit-reacts-jetblue-united-alliance