Activist investor Carl Icahn reports stake in JetBlue, calls shares undervalued

Activist investor Carl Icahn has reported a close to 10% stake in JetBlue Airways.

Shares of JetBlue spiked more than 15% in extended trading after the disclosure and Icahn ‘s description of the shares as undervalued.

Icahn amassed the stake in a series of purchases in January and February, regulatory filings show. Icahn also targets “the possibility of board representation,” the fillings added.

JetBlue has been cutting costs and working to improve operations in an effort to return to profitability after a post-Covid travel surge.

JetBlue recently suffered a blocked merger with budget carrier Spirit Airlines after a federal judge last month ruled against a combination of the two airlines, citing reduced competition.

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.

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