JetBlue Airways' second-largest investor, Vladimir Galkin, is considering selling his nearly 10% stake in the airline if its turnaround efforts fail to deliver results, Reuters reports. Galkin, who gained notoriety from the 2021 Gamestop “meme stock” rally, has invested over US$200 million in JetBlue since early 2024. He currently holds around 35 million shares, valued at approximately US$212 million.
JetBlue has been battling weakened travel demand and withdrew its full-year forecast in April, citing a low likelihood of breaking even in 2025. Its shares have plummeted 43% year-to-date, significantly underperforming competitors Delta and United, which have declined by 17% and 18%, respectively.
“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. While encouraged by JetBlue's recent cost-cutting memo, part of its broader JetForward initiative to boost profitability by up to US$900 million by 2027, he stressed the coming quarters would reveal whether the strategy is working. Galkin also called for trimming the airline's 13-member board as part of further cost savings.
Despite his frustrations, Galkin remains cautiously optimistic, particularly about JetBlue's upcoming collaboration with United Airlines, set to begin in 2027, which will allow travellers to book flights across both carriers' websites.
As of May 23, LSEG data shows that ten equity analysts rate JetBlue as a “hold,” while five have “sell” and two “strong sell” ratings. Notably, there are no “buy” recommendations.
JetBlue has only posted profits in two of its past nine quarters, with investor confidence visibly waning.
