JetBlue's stock price rises after activist Carl Icahn reveals his stake and claims the shares are undervalued.

• On Monday, Carl Icahn disclosed a nearly 10% stake in JetBlue Airways, stating that the airline's stock is undervalued.
• The company has been the subject of discussions with Icahn regarding potential board representation, according to the filing.
• JetBlue is taking measures to improve its operations and reduce costs in order to regain profitability following a surge in post-Covid travel and a failed merger with Spirit Airlines.

On Tuesday, JetBlue's stock price increased by 21% after activist investor Carl Icahn reported a nearly 10% stake in the airline, stating that the stock is undervalued.

In January and February, Icahn accumulated his stake through a series of purchases, as per regulatory filings. He intends to continue discussing the possibility of board representation with the company, according to the filings.

JetBlue stated that they are always open to constructive dialogue with their investors as they continue to execute their plan to enhance value for all of their shareholders and stakeholders.

Representatives for Icahn were not immediately available to comment.

In the late 1980s, Icahn privatized TWA, but the airline later struggled and filed for bankruptcy.

JetBlue has been reducing expenses in an attempt to improve its reliability and regain profitability following a surge in post-Covid travel and a failed merger with a budget airline. A federal judge recently blocked the merger, stating that it would reduce competition.

JetBlue and Spirit are contesting the judge's decision on their merger.

JetBlue's stock has fallen more than 27% in the past 12 months, while the NYSE Arca Airline Index has risen nearly 7% during the same period.

On Monday, Joanna Geraghty became JetBlue's new CEO and the airline appointed two experienced aviation professionals to help it regain its footing.