Carl Icahn wins seats on JetBlue board after taking stake in airline

Carl Icahn received his push for seats on JetBlue Airways’ board of administrators, based on a press release from the airline Friday, days after disclosing a almost 10% stake within the New York-based airline and that he was in talks for board illustration there.

The 2 new administrators are Jesse Lynn, normal counsel of Icahn Enterprises, and Steven Miller, a portfolio supervisor of Icahn Capital.

Shares of JetBlue have been up about 4% in after-hours buying and selling following the announcement.

The JetBlue funding is not Icahn’s first funding within the airline trade. In one in every of his extra notorious activist campaigns, the company raider took TWA non-public within the late Eighties, and the airline struggled and filed for chapter.

Icahn mentioned in disclosing his JetBlue stake that he believes the shares are undervalued. JetBlue’s inventory is down greater than 19% over the previous 12 months as of Friday’s shut. The NYSE Arca Airline Index, which tracks the broader sector, is up about 7% throughout the identical interval.

JetBlue’s new CEO, Joanna Geraghty, took the helm Monday, and the provider has appointed a pair of airline veterans to get it again on observe.

“Constructing on our distinct model and distinctive worth proposition, we’re targeted on delivering worth to our shareholders and all of our stakeholders, and we welcome the contributions of our new board members as we transfer ahead with that frequent objective,” Geraghty mentioned in a press release on Friday.

JetBlue hasn’t posted a revenue since earlier than the Covid-19 pandemic and has been slicing prices, making an attempt to turn into extra dependable after a post-Covid journey surge and a blocked merger with funds provider Spirit Airways. A federal decide final month dominated in opposition to a mix of the 2 airways, citing diminished competitors.

JetBlue had argued it wanted the tie-up to assist it compete in opposition to the biggest American carriers. JetBlue and Spirit are interesting the decide’s ruling.

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