Shares
in JetBlue Airways rose dramatically over the last several after it was
revealed that investor Carl Icahn took a stake in the airline.
Icahn
made
a nearly 10 percent investment in the carrier, according to Reuters.
JetBlue
share prices rose almost 15 percent on Tuesday after Icahn said he believed the
shares were undervalued, and that’s why he took the investment.
Icahn
is known as an activist investor who often causes disruption within companies.
“We are always open to constructive dialogue with our
investors,” JetBlue said.
New CEO Joanna Geraghty said her priority is to return the
airline to profitability after a couple of years of instability, including a
failed merger attempt with Spirit Airlines. The collaboration was blocked by a
federal judge last month, but both sides plan to appeal.
However, it isn’t just the investment by Icahn that has the
airline in the news. JetBlue has deferred more than $2 billion in capital
expenditures on airplanes and is planning to offer buyouts to some employees.
In the meantime, JetBlue has continued to honor the agreement
with Spirit as the process unfolds in court.
JetBlue has set February 23 as the record date for the February
2024 prepayment
to Spirit stockholders of $0.10 per Spirit
share. As part of the 2022 merger agreement, JetBlue will pay shareholders a
fee over time.
An additional payment is scheduled for February 29.
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