This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Germans Show Green to JetBlue

Updated from 4:25 p.m. EST

Germany's Lufthansa has agreed to buy 19% of JetBlue (JBLU - Get Report), signaling a vote of confidence in an innovative, comfort-focused carrier with a lagging share price and marking the latest foray into a U.S. company by a foreign investor.

The carriers said Lufthansa will spend approximately $300 million to buy 42 million shares of JetBlue at $7.27 each. JetBlue's stock rose 14% Thursday to $7.15. It had closed Wednesday at $6.25, just 10 cents above the 52-week low.

The agreement, which is subject to regulatory review, is scheduled to close in the first quarter. At that time, a Lufthansa nominee would join the JetBlue board.

Lufthansa approached JetBlue around the close of summer or early fall, said JetBlue CEO Dave Barger, on a conference call with analysts. "We look at Lufthansa as a really smart investor," he said. "What a huge affirmation statement that is, regarding their interest in JetBlue."

The transaction is strictly a financial one for now, he said, but "as the largest domestic airline at [New York's Kennedy International], JetBlue has continued to express an interest in exploring international alliances. We would consider exploring potential opportunities with Lufthansa or others at some point down the road."

At Kennedy, Lufthansa operates three flights a day, two serving Frankfurt and one to Munich, while JetBlue has a hub with 48 destinations. In all, Lufthansa flies to 17 U.S. cities and plans to add Seattle in the spring.

In a prepared statement, Lufthansa CEO Wolfgang Mayrhuber said: "Our investment reflects the confidence we have in JetBlue's quality, growth potential and management team. [It] presents Lufthansa with a compelling opportunity to invest in the U.S. point-to-point carrier market as the industry continues to evolve."
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
JBLU $19.33 0.00%
UAL $44.99 -1.23%
AAPL $93.24 -0.41%
FB $117.81 -0.21%
GOOG $701.43 0.82%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs