Key facts
- JetBlue Airways announced two board members, Jesse Lynn and Steven Miller, will step down.
- Lynn and Miller were appointed as part of a 2024 agreement with activist investor Icahn Enterprises.
- The agreement in 2024 involved JetBlue appointing two board members from Carl Icahn's firm.
- Icahn Enterprises' stake in JetBlue has fallen to 3.32% from an initial 10% disclosed in 2024.
- The departures come after JetBlue's CEO stepped down and its merger with Spirit was blocked by a court.
JetBlue Airways announced on Thursday that two of its board members, Jesse Lynn and Steven Miller, will step down immediately. These departures are part of a 2024 agreement with activist investor Carl Icahn's firm, Icahn Enterprises.
In 2024, JetBlue had agreed to appoint two representatives from Icahn's firm to its board to avoid a proxy fight. Icahn initially disclosed a stake of about 10% in the airline, which has since decreased to 3.32%.
The agreement and Icahn's stake disclosure followed the departure of JetBlue's CEO on January 8 and a federal court's decision on January 16 to block the airline's proposed merger with Spirit Airlines. New CEO Joanna Geraghty took over on February 12.
JetBlue, which has not reported an annual profit since 2019, is planning cost-cutting initiatives totaling up to $200 million and new revenue initiatives of $300 million this year.