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

A JetBlue Airways airplane prepares to take off from the Fortress Lauderdale-Hollywood Worldwide Airport in Fortress Lauderdale, Florida, on Jan. 31, 2024.

Joe Raedle | Getty Photos

Carl Icahn won his push for seats on JetBlue Airways’ board of directors, in step with a assertion from the airline Friday, days after disclosing a close to 10% stake within the Contemporary York-based airline and that he changed into as soon as in talks for board representation there.

The 2 novel directors are Jesse Lynn, total counsel of Icahn Enterprises, and Steven Miller, a portfolio manager of Icahn Capital.

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

The JetBlue funding is rarely Icahn’s first funding within the airline industry. In a single of his more fallacious activist campaigns, the company raider took TWA personal within the tiring 1980s, and the airline struggled and filed for monetary catastrophe.

Icahn stated in disclosing his JetBlue stake that he believes the shares are undervalued. JetBlue’s stock is down more than 19% over the final one year as of Friday’s shut. The NYSE Arca Airline Index, which tracks the broader sector, is up about 7% at some stage within the equivalent duration.

JetBlue’s novel CEO, Joanna Geraghty, took the helm Monday, and the provider has appointed a pair of airline veterans to earn it attend now heading within the right direction.

“Building on our determined ticket and irregular price proposition, we are fascinated by handing over price to our shareholders and all of our stakeholders, and we welcome the contributions of our novel board contributors as we jog forward with that total aim,” Geraghty stated in a assertion on Friday.

JetBlue hasn’t posted a profit since sooner than the Covid-19 pandemic and has been cutting prices, trying to radically change more respectable after a put up-Covid jog surge and a blocked merger with budget provider Spirit Airways. A federal resolve on final month ruled in opposition to a aggregate of the 2 airways, citing diminished competitors.

JetBlue had argued it main the tie-up to assist it compete in opposition to the ideal American carriers. JetBlue and Spirit are attention-grabbing the resolve on’s ruling.

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