JetBlue Airways Corporation (JBLU)’s stock closed on an uplifting note as its price ascended to $6.07, a 2.19% rise as the market wrapped up. The optimism didn’t wane after the bell, with the price jumping to $7.06 in after-hours trading, a robust increase of $0.99 or 16.31%.
The boost in JetBlue’s shares coincided with news that activist investor Carl Icahn has taken a considerable stake in the airline, calling the stock undervalued. With his storied history of shaking up corporate boards, Icahn has signaled a desire for continued talks with JetBlue about a possible seat at the table.
Amidst industry turbulence, JetBlue (NASDAQ: JBLU) has been diligently trimming costs and honing its operations, striving for a financial resurgence after a spike in travel demand and a stymied merger with Spirit Airlines. This is not Icahn’s inaugural venture into the aviation space, recalling his notable, though ultimately troubled, acquisition of TWA in the 1980s.
A recent judicial decision thwarted JetBlue’s merger plans with Spirit Airlines, citing a potential dip in industry competition. Still, JetBlue remains in contestation of the ruling, arguing that the merger is essential for its competitive edge against larger carriers.
Over the last year, JetBlue’s stock has seen more than a 27% dip as of the latest close, contrasting with the near 7% uptick of the NYSE Arca Airline Index for the sector.
Steering into a new chapter, JetBlue (NASDAQ: JBLU) has ushered in Joanna Geraghty as its new CEO. With this leadership change, the company is drawing on the insight of veteran industry figures to chart a course toward recovery and growth.
