A JetBlue Airways aircraft prepares to take off from Fort Lauderdale-Hollywood International Airport on January 31, 2024 in Fort Lauderdale, Florida.
Joe Raedle | fake images
Carl Icahn won his campaign for seats in JetBlue Airways' board of directors, according to a statement from the airline on Friday, days after disclosing a nearly 10% stake in the New York-based airline and that it was in talks for board representation there.
The two new directors are Jesse Lynn, general counsel at Icahn Enterprises, and Steven Miller, portfolio manager at Icahn Capital.
JetBlue shares rose about 4% in after-hours trading following the announcement.
The JetBlue investment is not Icahn's first investment in the airline industry. In one of his most infamous activist campaigns, the corporate raider took TWA private in the late 1980s, and the airline struggled and declared bankruptcy.
Icahn said in disclosing his stake in JetBlue that he believes the stock is undervalued. JetBlue shares are down more than 19% over the past 12 months as of Friday's close. The NYSE Arca Airline Index, which tracks the broader sector, is up about 7% over the same period.
JetBlue's new CEO Joanna Geraghty took the helm Monday and the airline tapped a pair of airline veterans to get it back on track.
“Building on our distinctive brand and unique value proposition, we are focused on delivering value to our shareholders and all of our stakeholders, and we welcome the contributions of our new board members as we move toward that common goal. “Geraghty said in a statement on Friday.
JetBlue has not made a profit since before the pandemic and has been cutting costs, trying to become more reliable after a post-Covid travel surge and a blocked merger with a low-cost airline. Spiritual airlines. Last month, a federal judge ruled against a combination of the two airlines, citing reduced competition.
JetBlue had argued that it needed the alliance to compete against the largest U.S. airlines. JetBlue and Spirit are appealing the judge's ruling.
