A regulatory filing filed on Monday local time showed that activist investor Carl Icahn already holds a 9.91% stake in US airline Jetblue Airways. Affected by this news, JetBlue Airways' stock price rose nearly 18% after the market closed.
Regulatory filings show Icahn acquired the shares through a series of acquisitions in January and February. Icahn acquired JetBlue shares because he believed they were undervalued and represented an attractive investment opportunity. The activist investor intends to have discussions with JetBlue management and the board "regarding the possibility of board representation."
This is not the first time Icahn has invested in the airline industry. In one of his more notorious activist investments, the Wall Street "corporate raider" took TWA private in the late 1980s, only to have 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-19 travel surge and a blocked merger with budget carrier Spirit Airlines. Last month, a U.S. federal judge blocked a merger between the two airlines on the grounds that it would reduce competition.
JetBlue has argued it needs alliances to help it compete with the largest U.S. airlines. JetBlue and Spirit Airlines are appealing the judge's ruling.
As of Monday's close, JetBlue shares had fallen more than 27% in the past 12 months. The NYSE Arca Airline Index, which tracks the entire airline industry, rose nearly 7% during the same period.