JetBlue shares jump 15% as activist Carl Icahn reports stake and calls shares undervalued
JetBlue has been cutting costs in an effort to return to profitability after a post-Covid travel surge and a blocked merger with budget carrier Spirit Airlines.
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Carl Icahn at the 6th annual CNBC Institutional Investor Delivering Alpha Conference on Sept. 13, 2016.
Heidi Gutman | CNBC
Activist investor Carl Icahn on Monday reported a nearly 10% stake in JetBlue Airways, saying the airline stock is undervalued. Shares of JetBlue spiked more than 15% in extended trading.
Icahn amassed the stake in a series of purchases in January and February, according to regulatory filings. He has had plans to continue discussions with the company "regarding the possibility of board representation," the records said.
JetBlue said in a statement, "We are always open to constructive dialogue with our investors as we continue to execute our plan to enhance value for all of our shareholders and stakeholders."
Representatives for Icahn were not immediately available to comment.
This is not Icahn's first investment involving the airline industry. In one of his more infamous activist campaigns, the corporate raider took TWA private in the late 1980s, only to see the airline struggle and file for bankruptcy.
A JetBlue Airways plane takes off from the Fort Lauderdale-Hollywood International Airport on January 31, 2024 in Fort Lauderdale, Florida.
Joe Raedle | Getty Images
