JetBlue announced Monday that it sold its venture capital subsidiary to Sky Leasing, an asset management company that specializes in aviation finance.
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.
JetBlue Ventures’ equity investments were valued at $89 million at the end of the first quarter, according to a regulatory filing. During the first quarter, the venture capital subsidiary gained $1 million on investments, an improvement from the $22 million loss it reported on investments last year.
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:
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