In a notable development yesterday, prominent activist investor Carl Icahn revealed that he has acquired a nearly 10% stake in JetBlue Airways, affirming his belief that the airline stock is significantly undervalued. This news sent JetBlue shares soaring by over 15% during after-hours trading.

According to regulatory filings, Icahn amassed the stake through a series of purchases carried out in January and February. In addition to the substantial investment, Icahn has expressed his intentions to engage in discussions with the company regarding the possibility of securing board representation.

JetBlue, in response to Icahn's move, released a statement stating, "We are 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." Although representatives for Icahn were not immediately available for comment, it is worth noting that this is not Icahn's first involvement in the airline industry.

JetBlue has been diligently implementing cost-cutting measures and working to improve its operations, aiming to achieve profitability after facing challenges due to the post-Covid travel surge and a thwarted merger attempt with budget carrier Spirit Airlines. The intended merger was recently blocked by a federal judge, who cited concerns about reduced competition. JetBlue and Spirit have since filed an appeal against the ruling, emphasizing the necessity of the tie-up to effectively compete with larger American carriers.

The airline's stock performance has been lackluster over the past year, with a decline of more than 27% as of Monday's closing. In contrast, the NYSE Arca Airline index, which monitors the broader sector, has demonstrated a rise of nearly 7% during the same period.

Adding to the developments surrounding JetBlue, the company appointed Joanna Geraghty as its new CEO on Monday. In an effort to put the company back on track, JetBlue has also enlisted the expertise of two seasoned airline veterans.

As the news continues to unfold, market participants and industry observers eagerly await further developments in the discussions between Carl Icahn and JetBlue Airways. Investors are keen to see how Icahn's involvement and potential board representation will shape the airline's future strategies and unlock untapped value for shareholders and stakeholders.

Note: This article is based solely on the provided information and does not include any additional context or speculation.