JetBlue Appoints Two New Directors Aftweer Icahn Takeover

JetBlue (NASDAQ: JBLU) has announced the appointment of two new independent directors to its board following an agreement with Icahn Enterprises L.P., a major shareholder of the airline. Jesse Lynn, General Counsel of Icahn Enterprises, and Steven Miller, Portfolio Manager of Icahn Capital, will join JetBlue's board of directors as non-voting observers until the airline's annual meeting of stockholders this spring, after which they will become full voting members.

Peter Boneparth, Chair of the JetBlue board, expressed enthusiasm about the agreement, stating, "We welcome Jesse and Steven to the board. With their experience on public company boards, often when navigating key inflection points, they will add useful insights as we set JetBlue on a path back to long-term sustainable growth and shareholder value creation."

Joanna Geraghty, Chief Executive Officer of JetBlue, emphasized the company's commitment to restoring its historical earnings power, stating, "We are executing more than $300 million of revenue initiatives this year, and are on track to deliver significant cost savings from our structural cost program, fleet modernization, and fixed cost base reductions."

Geraghty added, "Building on our distinct brand and unique value proposition, we are focused on delivering value to our shareholders and all of our stakeholders, and we welcome the contributions of our new board members as we move forward with that common goal."

Carl C. Icahn, from Icahn Enterprises, expressed appreciation for the constructive engagement with JetBlue's board and leadership team, stating, “We very much look forward to working with them in the future.”

With the addition of Lynn and Miller, the JetBlue board will expand to 13 directors, 12 of whom are expected to be independent. JetBlue has refreshed more than half the board since 2018 and added eight new independent directors, including the recent appointments.

JetBlue, known for its low fares and great service, carries customers to more than 100 destinations throughout the United States, Latin America, Caribbean, Canada, and Europe.

The company's full 8-K submission is available here.

2018 2019 2020 2021 2022 2023
Revenue (M) $7,658 $8,094 $2,957 $6,037 $9,158 $9,706
Operating Margins 3% 10% -57% -1% -3% -1%
Net Margins 2% 7% -46% -3% -4% -2%
Net Income (M) $189 $569 -$1,354 -$182 -$362 -$183
Net Interest Expense (M) -$47 $79 $179 $192 $166 $191
Depreciation & Amort. (M) $423 $474 $535 $540 $585 $611
Diluted Shares (M) 314 298 278 318 324 333
Earnings Per Share $0.6 $1.91 -$4.88 -$0.57 -$1.12 -$0.56
EPS Growth n/a 218.33% -355.5% 88.32% -96.49% 50.0%
Avg. Price $19.21 $17.94 $12.83 $16.67 $12.42 $6.96
P/E Ratio 32.02 9.34 -2.63 -29.25 -11.09 -12.43
Free Cash Flow (M) $292 $517 -$1,398 $735 -$388 -$490
CAPEX (M) $908 $932 $715 $907 $767 $1,034
EV / EBITDA 10.71 5.4 -5.57 15.77 22.93 10.25
Total Debt (M) $1,670 $2,334 $4,863 $4,006 $3,647 $3,729
Net Debt / EBITDA 1.74 1.08 -2.5 4.32 9.08 5.61
Current Ratio 0.55 0.67 1.25 0.95 0.51 0.53
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