In its latest move to regain its balance after a rocky first quarter, JetBlue Airways on Thursday said that the company's founder, David Neeleman, would step down from his position as chief executive.

He will be replaced immediately in that position by president and chief operating officer Dave Barger, but will carry on in his role as non-executive chairman.

Neeleman has been chief executive since founding JetBlue in 1998, and became chairman in 2002. Barger joined the company in 1998 as president and chief operating officer.

JetBlue suffered its share of negative attention recently when a Valentine's Day storm led it to cancel nearly 1,200 flights after having stranded passengers on planes for hours.

The airline's service reputation took a beating following the incident, and the company posted a $22 million first-quarter loss due to the cancellations and payments to stranded fliers.

The decision by JetBlue directors to shift Neeleman into a less operational, more strategic role represents their belief that the founder's strengths were not best used in the day to day management of a now $3 billion company.

"The board suggested to David that he could best serve the company in a more strategic role. David agreed," JetBlue spokeswoman Jenny Dervin said, Reuters reports. "The conversation was initiated by the board."

In recent months, JetBlue has taken strides to regain territory lost by its performance in February. The airline adopted a customer bill of rights, made operational changes, and is in the middle of shaking up the management structure. Neeleman's removal continues in that trend.

Since March JetBlue has hired a new chief operating officer and a chief for its John F. Kennedy International Airport hub.

Investors reacted positively to the news, sending shares of JetBlue up 5 cents to $11.05 by midmorning on Thursday.