Investor Carl Icahn bought an almost 10% stake in JetBlue Airways (B6, New York JFK) between January and February 2024, paying approximately USD119.75 million for 33.6 million shares, making him the third-largest investor in the airline after BlackRock and Vanguard Group. The move was announced by the carrier in a Securities and Exchange Commission (SEC) filing.
Icahn took the opportunity after JetBlue’s stock fell by nearly 50% in 2023 due to declining revenues and a blocked merger with Spirit Airlines (NK, Fort Lauderdale International). He said in the filing that he believes the US carrier's shares are undervalued and represent an attractive investment opportunity.
Moreover, Icahn is looking to become a part of JetBlue’s board. In a statement sent to the Associated Press, the airline said it is “always open to constructive dialogue with our investors as we continue to execute our plan to enhance value for all of our shareholders and stakeholders.”
Icahn is an American businessman known for having acquired 50.3% of TWA - Trans World Airlines in 1985. However, he was described as a “corporate raider” who used the carrier to improve his wealth while selling off its assets, such as TWA’s routes to London Heathrow to American Airlines for USD445 million.
Following his investment in Trans World Airlines, the company filed for Chapter 11 bankruptcy twice, in 1992 and 1995, before being ultimately sold to American Airlines in 2001.
JetBlue reported a USD104 net loss in 2023’s fourth quarter. During its fourth-quarter investors call, Chief Financial Officer Ursula Hurley, said the company expects capacity and departures to be down in 2024 and will undertake deeper cuts across its cost base throughout the year. The company will also slow new aircraft deliveries.
The ch-aviation fleets module shows JetBlue’s fleet comprises 302 aircraft, including twenty-five A220-300s, 130 A320-200s, sixty-three A321-200s, twenty-one A321-200NX, ten A321-200NX(LR)s, and fifty-three E190s.
