JetBlue’s investor known for profiting from the GameStop meme stock saga, Vladimir Galkin, may sell his $212 million stake if the airline’s cost-cutting and turnaround plan fails to show results amid deep financial and operational struggles.

JetBlue Airways Corp. (JBLU) is under mounting pressure from one of its largest shareholders, Vladimir Galkin, who has signaled that he may divest his nearly 10% stake if the airline fails to deliver on its promises of cost savings and improved financial performance.

According to a Reuters report, Galkin, a Miami-based investor known for profiting from the GameStop meme stock saga, has poured more than $200 million into the struggling airline between February and August 2024. 

Despite the news, JetBlue stock edged 0.2% higher in Thursday’s pre-market trading session.

The air carrier’s shares have plunged more than 40% so far this year, leaving Galkin facing losses on his investment. He indicated to Reuters that, although he's not planning an immediate exit, he won’t wait forever for a turnaround. 

JetBlue recently reaffirmed plans to cut costs and streamline operations through its “JetForward” strategy, which targets up to $900 million in earnings before interest and taxes by 2027. 

Galkin viewed the June update on the initiative positively but emphasized that tangible progress needs to emerge quickly if he’s to remain invested.

Galkin also appeared to be scrutinizing JetBlue's leadership structure. He proposed that trimming the current 13-person board could help cut costs.

JetBlue has reported positive earnings in just two of its past nine quarters, fueling continued doubt among market watchers. Major institutional investors, including BlackRock, Fidelity, and T. Rowe Price, have not commented publicly on the situation.

In the first quarter (Q1) of 2025, the company’s revenue declined 3.1% year-on-year to $2.14 billion, but matched the analysts' consensus estimate of $2.13 billion, as per Finchat data.

The adjusted net loss for the quarter totaled $0.59, better than the consensus estimate of a loss of $0.63 per share.

Despite his concerns, Galkin maintains a measured sense of optimism. He sees promise in JetBlue’s future collaboration with United Airlines Holdings Inc (UAL), which will enable shared booking capabilities beginning in 2027.

The partnership enables travelers to reserve flights through either airline’s website and earn or use frequent flyer rewards across both loyalty programs. 

As part of the deal, the two airlines will also coordinate access to takeoff and landing slots at both John F. Kennedy International and Newark Liberty airports, aiming to boost efficiency while stopping short of a complete merger.

On Stocktwits, retail sentiment toward JetBlue changed to ‘bearish’ from ‘neutral’ territory the previous day.

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