"JetBlue Undervalued," Carl Icahn Discloses 9.91% Stake

Activist investor Carl Icahn, known as a "corporate raider," confirmed on the 12th (local time) that he holds nearly a 10% stake in airline JetBlue, stating that the stock is undervalued. JetBlue's shares surged more than 16% in after-hours trading.

[Image source=Reuters Yonhap News]

U.S. media, including the economic outlet CNBC, reported on the same day citing regulatory filings that Icahn purchased JetBlue shares in January and February, currently holding a 9.91% stake. As a result, Icahn became the third-largest shareholder of JetBlue, following BlackRock and Vanguard Group. Bloomberg estimated that Icahn's stake was worth approximately $204 million based on the closing price that day.

In the filings, Icahn evaluated JetBlue's stock as undervalued, describing it as an attractive investment opportunity. He also stated that he would continue discussions with the company's management regarding the possibility of becoming the board chairman. JetBlue confirmed on the same day in a statement that it is "always open to constructive dialogue with investors."

This is not Icahn's first investment in an airline. A notable example is his hostile takeover of the U.S. airline Trans World Airlines (TWA) in the 1980s. The Wall Street Journal (WSJ) reported that Icahn clashed with unions at the time, resulting in the company spending most of the 1990s under bankruptcy court protection.

Notably, the disclosure of Icahn's stake in JetBlue coincided with the day Joanna Geraghty was appointed as the new CEO, following Robin Hayes' resignation for health reasons.

JetBlue, a low-cost carrier, has been operating at a loss for several years. It previously pursued the acquisition of Spirit Airlines to compete with major carriers, but this effort was recently blocked. A federal court sided with the Department of Justice's concerns that the merger would harm market competition and lead to higher airfares, negatively impacting customers. The company plans to appeal, but industry observers largely believe the decision is unlikely to be overturned.

Meanwhile, following the news of Icahn's investment, JetBlue's stock price rose. After closing the regular session on the New York Stock Exchange with gains in the 2% range, it showed a 16% increase in after-hours trading. However, it remains lower compared to a year ago.

This content was produced with the assistance of AI translation services.