Shares of JetBlue Airways Corp. rose sharply after hours on Monday after billionaire activist investor Carl Icahn reported a 9.91% stake within the air provider and stated his funding agency would proceed discussing potential board illustration.
That disclosure was made in a regulatory submitting on Monday. Icahn, within the submitting, stated Jetblue’s
inventory was “undervalued and represented an attractive investment opportunity.”
The submitting additionally stated Icahn “had, and intend to continue to have, discussions with members of the issuer’s management and board of directors regarding the possibility of board representation.”
JetBlue shares jumped 16.5% in after-hours buying and selling on Monday. The inventory is down 28.9% over the previous 12 months.
The transfer by Icahn comes after a federal choose final month blocked JetBlue’s proposed merger with Spirit Airlines Inc.
doubtlessly leaving the provider with restricted choices for future development because it tries to get again to profitability. The airways are interesting that call.
Late final month, JetBlue stated the cope with Spirit “remains in effect” however that it was contemplating its choices beneath that settlement. Days earlier, JetBlue stated that some circumstances to make the deal occur “may not be satisfied.” Spirit, in response, stated it believed there was “no basis” for ending the settlement.
Icahn disclosed the stake after Joanna Geraghty turned JetBlue’s new chief government this month, changing Robin Hayes. The firm in January stated it anticipated first-quarter gross sales to fall 5% to 9%, a bit worse than analysts’ forecasts on FactSet.
“We remain intensely focused on restoring profitability, taking steps to ensure every dollar we invest is making an impact,” Geraghty stated within the firm’s earnings launch in January.
“As part of these efforts, we are carefully evaluating deeper cuts to our controllable costs beyond our ongoing fleet modernization and structural cost programs,” she stated.