Latest news with #JetBlueVentures
Travel Weekly
06-05-2025
- Business
- Travel Weekly
JetBlue sells venture capital subsidiary
JetBlue has sold its venture capital subsidiary to aircraft lessor Sky Leasing for an undisclosed price. The airline's divestment of JetBlue Ventures comes as it continues to work on shoring up its finances. JetBlue CEO Joanna Geraghty said the airline is "fully focused on our JetForward strategy to get JetBlue back to profitability and set us up for long-term success as we compete against the legacy carriers. This transaction enables us to focus on our core airline operations while maintaining our access to the innovations and opportunities of current and future portfolio companies through our ongoing strategic partnership with JetBlue Ventures." Since its launch in 2016, JetBlue Ventures has focused on seeding startups. It has made 55 investments in early-stage startups and more than 40 follow-on investments, the company said. Examples include electric air taxi startup Joby, event-building platform Bizly, AI-driven airline revenue management company Flyr and Electric Power Systems, which focuses on modular battery power for aviation. JetBlue reported a Q1 net loss of $208 million. Under its JetForward plan, the airline has reduced capacity; refocused its route map on core markets in the Northeast, Florida and the Caribbean; deferred aircraft deliveries; and implemented cost-cutting measures. JetBlue also plans to enter into a new partnership soon with a domestic U.S. airline, though it has not said which one. Reuters reported last week that arrangement will be with United, citing three anonymous sources. The Justice Department broke up JetBlue's short-lived Northeast Alliance with American in Boston and the New York area in 2023. Sky Leasing said that its acquisition of JetBlue Ventures is a natural evolution of its partnership with JetBlue. The purchase "will provide us, our investors and our global aviation partners with direct access to the cutting-edge innovations and technologies shaping the future of travel," Sky Leasing said.
Skift
05-05-2025
- Business
- Skift
JetBlue Sells Venture Capital Arm in Bid to Boost Profitability
JetBlue CEO Joanna Geraghty said selling off the company's venture capital arm would allow it to 'focus on our core operations.' JetBlue announced Monday that it sold its venture capital subsidiary to Sky Leasing, an asset management company that specializes in leasing aircraft. The details of the transaction were not disclosed. JetBlue said it would continue to serve as a strategic partner to JetBlue Ventures and its portfolio companies. The venture capital arm will also get to keep the name JetBlue Ventures as part of a brand licensing agreement with the New York-based carrier. Some of JetBlue Ventures portfolio companies include flying taxi company Joby and airline retail platform Flyr. Amy Burr, the CEO of JetBlue Ventures, will continue in the top post. JetBlue CEO Joanna Geraghty said in a statement that the transaction would allow the company to 'focus on our core operations.' JetBlue Looks for Other Opportunities The sale comes as JetBlue has been struggling to maintain profitability since the collapse of both the Northeast Alliance with American Airlines and the Spirit Airlines merger. The carrier had an underwhelming first quarter where it reported a net loss of $208 million as domestic demand weakened. JetBlue's share price has also dropped significantly, fueling speculation that it could become a target for an acquisition. Currently, the carrier is reported to be in talks with United Airlines about a domestic partnership. Neither JetBlue nor United have confirmed that they are negotiating a partnership. JetBlue executives said during an earnings call April 29 that they were expecting to make an announcement on a partnership during the second quarter. JetBlue president Marty St. George said during the call that such a partnership would provide customers with greater connectivity. 'If you are a customer in the Northeast and you love JetBlue for leisure, but twice a year, you have to go to Omaha or Boise, these are places that you can't earn TrueBlue points on now. And when this partnership goes forward, you will be able to," St. George said. Watch Marty St. George at the Skift Aviation Forum 2024: Recorded November 2024 What am I looking at? The performance of airline sector stocks within the ST200. The index includes companies publicly traded across global markets including network carriers, low-cost carriers, and other related companies. The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more airlines sector financial performance. Read the full methodology behind the Skift Travel 200.
