Carl Icahn on the sixth annual CNBC Institutional Investor Delivering Alpha Convention on September 13, 2016.
Heidi Gutman | CNBC
Activist investor Carl Icahn on Monday reported a virtually 10% stake in JetBlue Airways, saying the airline inventory is undervalued. Shares of JetBlue spiked greater than 15% in prolonged buying and selling.
Icahn amassed the stake in a sequence of purchases in January and February, in keeping with regulatory filings. He has had and plans to proceed discussions with the corporate “concerning the potential for board illustration,” the data mentioned.
JetBlue mentioned in a press release, “We’re at all times open to constructive dialogue with our buyers as we proceed to execute our plan to reinforce worth for all of our shareholders and stakeholders.”
Representatives for Icahn weren’t instantly accessible to remark.
This isn’t Icahn’s first funding involving the airline trade. In one in all his extra notorious activist campaigns, the company raider took TWA non-public within the late Nineteen Eighties, solely to see the airline wrestle and file for chapter.
JetBlue has been chopping prices and dealing to enhance operations in an effort to return to profitability after a post-Covid journey surge and a blocked merger with funds service Spirit Airways. A federal choose final month dominated towards a mix of the 2 airways, citing diminished competitors.
JetBlue had argued it wanted the tie-up to assist it compete towards the most important American carriers. JetBlue and Spirit are interesting the choose’s ruling.
Within the final 12 months, JetBlue’s inventory is down greater than 27% as of Monday’s shut. The NYSE Arca Airline index, which tracks the broader sector, is up almost 7% over the identical interval.
JetBlue’s new CEO, Joanna Geraghty, took the helm Monday, and the service has appointed a pair of airline veterans to get it again on monitor.
— CNBC’s John Melloy and Leslie Josephs contributed to this report.
