Billionaire investor Carl Icahn takes near-10% stake in JetBlue, echoing his iconic TWA deal

Core Viewpoint - Carl Icahn has acquired a 9.9% stake in JetBlue, valued at approximately $200 million, and believes the airline's stock is undervalued, seeking board representation to influence its direction [1][2][4]. Group 1: Investment Details - Icahn's investment vehicles spent around $120 million to acquire 33.6 million shares, which were valued at $204 million as of the latest market close [3]. - This acquisition makes Icahn the third-largest investor in JetBlue, following BlackRock and Vanguard Group [4]. Group 2: Company Performance - JetBlue's stock price has decreased nearly two-thirds from over $20 in May 2021 to about $7 today, resulting in a market value of approximately $2 billion [4]. - The airline reported operating revenues of nearly $10 billion last year but incurred a net loss of $310 million, partly due to exceptional costs related to a blocked merger with Spirit Airlines [4]. Group 3: Strategic Moves - JetBlue's planned acquisition of Spirit Airlines for $3.8 billion was blocked by a federal judge, but the company still aims to finalize the deal [5]. - The airline has recently appointed a new CEO and rehired its former chief commercial officer as president to revitalize its business [6]. Group 4: Historical Context - Icahn's involvement with JetBlue is reminiscent of his past takeover of Trans World Airlines (TWA) in the 1980s, where he attempted to turn around the struggling airline [6]. - Although there are no indications that Icahn plans to take control of JetBlue, he sees potential value in the company and aims to help unlock it [7].