Shares of JetBlue Airways (JBLU) are up nearly 3% on news that activist investor Carl Icahn has secured two seats on the airline’s board of directors.
Icahn recently disclosed a nearly 10% stake in the discount carrier, sending its shares up more than 20% in a single trading day.
JetBlue’s stock is now up more than 30% this year and trading at $6.96 U.S. per share on hopes that a new management team and activist pressure from Icahn will lead to a turnaround at the beleaguered airline.
Earlier in February, a judge ruled against a proposed merger between JetBlue and rival Spirit Airlines (SAVE), citing competition concerns. That news hurt JetBlue’s stock.
After the close of trading on Jan. 16, JetBlue confirmed that Icahn had secured two board seats, which will be filled by Icahn Enterprises’ (IEP) general counsel Jesse Lynn and portfolio manager Steven Miller.
Icahn has a history of trying to turnaround airlines. He took TWA private in 1988, saddling it with debt, which eventually led to that airline filing for bankruptcy in 1992.
Icahn is getting involved in JetBlue at a critical time for the carrier. JetBlue has a new chief executive officer (CEO) in company veteran Joanna Geraghty, who is the first woman to lead a major U.S. airline.
JetBlue also named a new chief operating officer and new president in recent weeks. Still, the airline has struggled coming out of the pandemic amid increased competition in the low-cost airline segment.
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