Carl Icahn Reveals 9.9% Stake in JetBlue Airways

Activist investor Carl Icahn has disclosed a 9.9% stake in JetBlue Airways, referring to it as an undervalued and "attractive" investment opportunity. In a filing with the Securities and Exchange Commission on Monday, Icahn stated that he has been in discussions with the management and board of JetBlue regarding potential board representation.

Icahn's filing also mentioned that he may increase or reduce his stake in the airline, as well as engage in hedging, swaps, or other derivative transactions. However, at present, he does not have any specific plans or proposals for the actions described in the filing.

With approximately 33.6 million shares in the carrier, Icahn and his funds have built a significant position in the company. This news has caused JetBlue shares to surge by 17% in after-hours trading.

Responding to Icahn's investment, a spokesperson for JetBlue stated, "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."

It is worth noting that the shares were acquired on multiple days between January 19 and February 12, according to the filing.

In other news, JetBlue recently appointed Joanna Geraghty as its new CEO, making her the first woman to lead a major U.S. airline. Geraghty previously served as the president and chief operating officer of the carrier.

However, the company's planned $3.8 billion acquisition of discount carrier Spirit Airlines faced a setback when a federal court judge blocked the deal. Despite this setback, JetBlue is appealing the decision.

JetBlue is actively focused on cost-cutting, with plans to achieve savings of $200 million by the end of this year. Additionally, the airline is implementing changes that are expected to generate an increase in revenue of $300 million.