Summary
- Investor Vladimir Galkin, JetBlue’s third-largest shareholder, wishes to have a seat on the board.
- JetBlue has faced several challenges this year, forcing the carrier to restructure its network and fleet for better profitability and efficiency.
- JetBlue sees improvements after the busy Summer travel season with increased year-on-year revenue, and better on-time performance.
A Florida-based investor holding almost 10% stake in JetBlue recently met with the carrier’s board members and top executives to discuss the possibility of being allocated a seat among the airline’s board. After recently increasing the number of shares held in the airline, he is now JetBlue’s third-largest investor.
The investor
Based in Florida, United States, Vladimir Galkin has recently obtained a considerable number of shares in the American carrier
JetBlue
. As reported by Yahoo Finance, Galkin recently increased his holdings to 9.98% in the airline, making him now the third-largest investor in JetBlue.
Thus, he decided to meet with the carrier’s board members, along with the airline’s CEO, Joanna Geraghty, and CFO, Ursula Hurley, earlier this week to discuss the possibility of having a seat on the board sometime in the future. Reports suggest that the CEO did not make any commitments but encouraged Galkin to follow the airline’s bylaws and communicate with the nominating committee.
Photo: Vincenzo Pace | Simple Flying
It is further reported that Galkin has not decided if he wants to be a director and that he does not intend to increase his stock beyond 10%, as this will require further disclosures. Furthermore, exceeding a 10% stake in the airline would allow Galkin to call for a special shareholder meeting, and he would also be considered an insider.
Critical time for the airline
The airline has recently suffered various headwinds, which have forced it to restructure its route network and fleet plans for the coming years. A major blow for the carrier was the Department of Justice (DoJ) blocking its merger with Spirit Airlines earlier this year. This occurred at the same time the airline was in the process of right-sizing its East-coast operations after ending the North-East alliance with
American Airlines
last year.
Overall, between January 2024 and January 2025, the carrier will have ceased operating services on over 50 routes that the airline identified as unprofitable.
Photo: Vincenzo Pace | Simple Flying
To navigate this turbulent time, the airline is following its “JetForward” strategy, which encompasses various issues identified and possible solutions to overcome them. Network restructuring is one element in the strategy, and another is simplifying the airline’s fleet. Following this, the airline has deferred over $3 billion worth of A321neo aircraft orders to beyond 2030, prioritizing the delivery of the Airbus A220 aircraft and retiring its aging fleet of Embraer E190s.
Improvements seen
After experiencing various headwinds and restructuring for the past eight months, the airline is seeing improvement as the carrier’s stocks have risen by 6.5% after posting updated third-quarter guidance.
Considering the airline experienced a record travel demand in the United States (especially the 4th of July week and Labor Day week) paired with the fact that JetBlue managed to avoid major disruptions during the recent global IT outage, which affected several of its competitors. From recording improved year-on-year revenue to the carrier’s expected fuel costs decreasing, the airline is now more efficient and streamlined.
Photo: Vincenzo Pace | Simple Flying
Despite the record-high travel demand and various disruptions experienced this summer, the airline has actually recorded an improved on-time performance when compared to 2023, thus indicating the changes made by the airline have indeed made the carrier more efficient.