Latest news with #SkyLeasing
Skift
06-05-2025
- Business
- Skift
JetBlue Ventures CEO: Investment Focus and What's Next After Sale
JetBlue Ventures is still focused on investing in startups for the airline industry, but its funding is not coming from JetBlue anymore. JetBlue Ventures may be changing hands, but CEO Amy Burr expects the firm's investment priorities to remain largely the same. That's because the new owner of the venture capital firm, Sky Leasing, still has an interest in improving the airline industry. It's an asset management company that specializes in aviation finance, with a portfolio that includes more than 100 airlines worldwide. Burr is not ready to talk about the JetBlue Ventures funding structure under the new ownership or how many investments the firm plans to make for the rest of the year. But she did say what the team of nine is keeping their eyes on. Investment Priorities When Burr spoke with Skift in late 2022, she was more interested in blockchain as it relates to data storage, as well as biometrics and ideas like digital bag tags. The world has changed since then, and so have investment interests. That means the team is more interested in AI tools as a way to improve operations and efficiency. 'We've been looking at a lot of that type of company for the last two years,' Burr said. And they're interested in data infrastructure and tech around security and cybersecurity — a big concern right now for airlines, especially with the rise of data sharing. The team is also still looking at digital identity and fintech. JetBlue Ventures has invested in 55 early stage startups and made more 40 follow-on investments since it was founded in 2016. Eight of those companies have either been acquired or gone public, and a handful have gone out of business. Past investments include the electric aircraft startup Joby — which went public via SPAC in 2021 — and airline retail platform Flyr. The company has invested in multiple startups over the last couple of years, including: Air Company (renewable jet fuel), Wherobots (cloud services), Beacon AI (digital pilot assistant), Aether Fuels (renewable jet fuel), NLX (AI for customer service). The company has invested pretty thoroughly in climate tech over the past couple of years, so now they're looking to put their eggs in some other baskets. 'We're always on the lookout for the next game-changing technology that will really transform the ecosystem. We have a pretty broad mandate in terms of the type of things we're looking for.' JetBlue Ventures and the Airline JetBlue is maintaining its relationship — at least for now — with JetBlue Ventures but is not making any new investments, Burr said. JetBlue was the sole investor in JetBlue Ventures, and the investments always came from the airline's balance sheet, Burr said. That means the airline still has a stake in all the startups it has invested in so far, and the plan for now is to maintain that. JetBlue Ventures' total equity investments were valued at $89 million at the end of the first quarter this year, according to a public filing. 'This is a time for them to focus on the core operations of the airline … yet they still want to have that access to innovation and that ability to ingest emerging tech and have us there to explain to them some of the great things that are happening in the industry,' Burr said in an interview with Skift. That means startups also continue to have mentorship and trial opportunities with JetBlue, and now those opportunities expand under Sky Leasing. The move is a divergence from what the company said its plans were last year. 'We'll continue to make investments that hopefully will pay off but will also enhance the travel experience,' JetBlue's CFO told investors during a call in February 2024. IAG (International Airlines Group), on the other hand, recently dedicated €200 million ($216.5 million) over five years for a new venture capital arm to invest in startups. Other travel companies that have venture arms include Amadeus, United Airlines, and Alaska Airlines.
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.
