JetBlue Airways saw a significant surge in its shares after activist investor Carl Icahn reported a nearly 10% stake in the airline, citing the stock as undervalued. This move by Icahn has sparked discussions about possible board representation within the company.
The stake was acquired through a series of purchases in January and February, as per regulatory filings. JetBlue responded by stating their openness to constructive dialogue with investors as they continue to enhance value for shareholders and stakeholders.
This is not Icahn’s first foray into the airline industry. In the late 1980s, he took TWA private, which eventually led to the airline filing for bankruptcy. JetBlue, on the other hand, has been focusing on cost-cutting and operational improvements to regain profitability following the post-Covid travel surge and a blocked merger with Spirit Airlines.
Despite facing challenges, JetBlue appointed Joanna Geraghty as its new CEO and has brought in experienced airline veterans to guide the company forward. The airline is also appealing a recent ruling against its merger with Spirit Airlines.
Over the past year, JetBlue’s stock has declined by over 27%, while the NYSE Arca Airline Index, which tracks the broader sector, has seen a 7% gain during the same period.
It remains to be seen how Icahn’s involvement will impact JetBlue’s future and whether the airline can overcome its current obstacles to regain stability and growth in the industry.
