Tags: JetBlue | Shares | Carrier | CEO

JetBlue Shares Jump as Carrier Names New CEO

Thursday, 18 Sep 2014 06:07 PM

JetBlue Airways on Thursday named Robin Hayes, its current president, to succeed Dave Barger as chief executive, sending the airline's shares up in after-market trading.

Analysts had widely expected the appointment, which takes effect Feb. 16, 2015, because Barger's contract was to expire that month.

They also anticipate that the New York-based airline will introduce checked baggage fees and other changes, in step with competitors in the industry.

Cowen and Co. said last month that it expects JetBlue to outperform the market under new management and increased its price target for the airline's shares to $15 from $10.

"JetBlue has struggled with their hybrid model catering to the business (traveler) and the leisure traveler," Cowen wrote in a note. "We believe a management change would lead to a change in philosophy and likely morph the model similar to one of Spirit Airlines, although not as extreme."

The most widely expected changes include checked baggage fees and additional seats in economy class.

JetBlue shares were up 5 percent after the bell at $11.90.

© 2017 Thomson/Reuters. All rights reserved.

 
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JetBlue Airways on Thursday named Robin Hayes, its current president, to succeed Dave Barger as chief executive, sending the airline's shares up in after-market trading.
JetBlue, Shares, Carrier, CEO
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2014-07-18
Thursday, 18 Sep 2014 06:07 PM
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