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.
JetBlue
has
been
cutting
costs
and
working
to
improve
operations
in
an
effort
to
return
to
profitability
after
a
post-Covid
travel
surge
and
a
blocked
merger
with
budget
carrier
Spirit
Airlines.
A
federal
judge
last
month
ruled
against
a
combination
of
the
two
airlines,
citing
reduced
competition.
JetBlue
had
argued
it
needed
the
tie-up
to
help
it
compete
against
the
largest
American
carriers.
JetBlue
and
Spirit
are
appealing
the
judge’s
ruling.
In
the
past
12
months,
JetBlue’s
stock
is
down
more
than
27%
as
of
Monday’s
close.
The
NYSE
Arca
Airline
Index,
which
tracks
the
broader
sector,
is
up
nearly
7%
during
the
same
period.
JetBlue’s
new
CEO,
Joanna
Geraghty,
took
the
helm
Monday,
and
the
carrier
has
appointed
a
pair
of
airline
veterans
to
get
it
back
on
track.
—
CNBC’s
John
Melloy
and
Leslie
Josephs
contributed
to
this
report.
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