SKY Leasing acquires JetBlue Ventures

SAN FRANCISCO - SKY Leasing, a global aviation investment manager, has acquired JetBlue Ventures, the venture capital subsidiary of JetBlue Airways (NASDAQ: JBLU), the companies announced today. The acquisition is set to enhance the growth of JetBlue Ventures by leveraging SKY’s extensive industry connections and financial resources. JetBlue, currently valued at $1.7 billion in market capitalization, will maintain a strategic partnership with its former subsidiary, continuing to support its portfolio companies. According to InvestingPro data, JetBlue’s stock has shown significant volatility, with a notable 17% gain in the past week despite being down 39% year-to-date.

Matthew Crawford, Co-Chief Investment Officer at SKY, expressed enthusiasm for the acquisition, stating that it builds upon the existing partnership with JetBlue and provides access to innovative technologies in the travel sector. Joanna Geraghty, CEO of JetBlue, highlighted that the move allows JetBlue to concentrate on its core operations and profitability strategies while still engaging with the innovations of JetBlue Ventures through the ongoing partnership. This strategic shift comes as InvestingPro analysis shows JetBlue operating with a significant debt burden of $9.4 billion and facing cash flow challenges.

JetBlue Ventures, established in 2016, has a successful track record with investments in 55 startups, resulting in eight successful exits. The venture arm, still under the leadership of Amy Burr, will continue to manage all current and future investments, with JetBlue retaining stakes in all existing portfolio companies. The JetBlue Ventures brand will also persist under a brand licensing agreement.

The financial terms of the transaction have not been disclosed. Legal counsel for the acquisition included Kirkland & Ellis LLP for SKY Leasing, Cooley LLP for JetBlue, and DJL Corporate Law for JetBlue Ventures.

SKY Leasing, with a presence across five offices worldwide, manages over $5 billion in aviation assets as of March 2025. The company specializes in providing capital solutions to airlines, backed by a history of aviation relationships and investment expertise.

This strategic acquisition is based on a press release statement and aims to foster the growth of innovative travel technologies while allowing JetBlue to focus on its airline’s profitability and operational strategies. InvestingPro analysis reveals that 11 analysts have recently revised their earnings expectations downward for the upcoming period, with the company’s overall financial health score currently rated as "WEAK." For comprehensive insights into JetBlue’s financial position and future outlook, investors can access the detailed Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, JetBlue Airways reported its earnings for the first quarter of 2025, showing a mixed financial performance. The airline posted an earnings per share (EPS) of -$0.59, slightly surpassing the forecast of -$0.61, but its revenue of $2.14 billion fell short of the anticipated $2.16 billion. This revenue miss highlights ongoing challenges in meeting demand projections. Meanwhile, JetBlue is exploring a potential partnership with United Airlines as it seeks to enhance customer connectivity following the blocking of its Northeast Alliance with American Airlines. The proposed collaboration with United Airlines, which is still under discussion, could provide JetBlue with a strategic advantage by expanding its network and frequent-flier offerings. In terms of analyst activity, Citi has increased its price target for JetBlue stock from $4.25 to $5.00, maintaining a Neutral stance. Citi’s analyst highlighted JetBlue’s management efforts in cost control and strategic partnerships, despite ongoing financial challenges. These developments underscore JetBlue’s efforts to navigate current industry and financial hurdles.

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