Shares of JetBlue Airways rose more than 15% in extended trading after Carl Icahn reported a nearly 10% stake in the company and said the stock is undervalued. Regulatory filings also report he has been talking to JetBlue about “the possibility of board representation.”
The airline has been taking steps to return to profitability following a post-pandemic travel spike and the blocking of its proposed merger with Spirit Airlines on concerns of reduced competition. The company has offered staff buyouts, delayed some aircraft purchases, dropped unprofitable routes and reduced frequency on other routes. JetBlue last turned an annual profit in 2019, and Wall Street analysts predict it won’t do so again until 2025.
“The key strategic challenge we’ve always faced is how to thrive as a small player in an industry dominated by four large airlines,” said new CEO Joanna Geraghty who took the reins from Robin Hayes Monday, becoming the first woman to head a US passenger airline.
“As we operate in one of the most complex and challenging airspaces, operational reliability is foundational to all of our priorities, helping us deliver a better customer experience while also improving revenues with fewer refunds and disruption vouchers and better costs as we mitigate overtime and premium pay,” she said.
