Lufthansa will purchase a 19% stake in lagging JetBlue Airways for about $300 million, a move that reflects the industry-wide consolidation underway in recent months. The sale price of $7.27 a share is a 16% premium on yesterday's closing price of $6.25.
The announcement immediately bounced JetBlue shares up 13% to $7.06, the Wall Street Journal reports.
The German airline giant, which will get one seat on the JetBlue board, is not allowed to own more than 25% of a US carrier. Rising fuel prices have put the relatively young JetBlue in the red in recent years, and it was embarrassed last winter after bungling service during a snowstorm. Founder David Neeleman was ousted as CEO in May.