JetBlue Airways (NASDAQ:JBLU), the budget airline, saw shares pop around 15% in pre-market trading after it was found activist investor Carl Icahn had acquired around a 10% stake in what he believes is an undervalued stock.
Icahn's shareholding, built through purchases in January and February, has left him hopeful it could open the door to potential discussions about board representation.
A spokesperson for the airline said: “We are always open to constructive dialogue with our investors as we continue to execute our plan to enhance value for all of our shareholders and stakeholders.”
JetBlue has been aggressively working on cutting costs and enhancing its operations in a bid to rebound to profitability.
This effort comes after the airline faced challenges after a post-Covid travel boom and regulatory pushback against its planned merger with Spirit Airlines.
Icahn's investment in JetBlue adds to his history of involvement in the airline industry, following a failed campaign in the 1980s in which he took TWA private only to see it fall into bankruptcy a decade later.
Shares in the airline have performed underwhelmingly over the past year, with a 27% decline, contrasting with the broader airline index's 7% gain.
However, JetBlue will try to turn this around with its newly appointed boss Joanna Geraghty and the addition of seasoned airline professionals to its leadership team.