Carl Icahn at CNBC’s Sixth Annual Institutional Investor Conference holding the Alpha Conference on September 13, 2016.
Heidi Gutmann | CNBC
Activist investor Carl Icahn reported a nearly 10% stake on Monday. JetBlue Airways, saying airline stocks are undervalued. JetBlue shares rose more than 15% in extended trading.
According to regulatory filings, Icahn amassed the stake in a series of purchases in January and February. He has had and plans to continue discussions with the company “regarding the possibility of board representation,” the documents say.
JetBlue said in a statement: “We are always open to constructive dialogue with our investors as we continue to advance our plan to increase value for all of our shareholders and stakeholders.”
Representatives for Icahn were not immediately available to comment.
This isn’t Icahn’s first investment involving the airline industry. In one of his most infamous activism 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 as it tries to return to profitability after a post-Covid travel surge and a stalled 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 that it needed the union to help it compete against America’s largest airlines. JetBlue and Spirit are appealing the judge’s ruling.
Over the past 12 months, JetBlue shares are down more than 27% as of Monday’s close. The NYSE Arca Airline Index, which tracks the broader sector, rose nearly 7% over the same period.
JetBlue’s new CEO, Joanna Geraghty, took the helm Monday, and the company has appointed a pair of airline veterans to get it back on track.
— CNBC’s John Melloy and Leslie Josephs contributed to this report.