By Doyinsola Oladipo and Rajesh Kumar Singh
Aug 27 (Reuters) - Activist investor Carl Icahn has given up his board representation at JetBlue Airways after sharply reducing a stake in the airline that he once called an attractive investment opportunity.
In 2024, JetBlue agreed to appoint two members from Icahn’s firm to its board, Jesse Lynn and Steven Miller, under an agreement that also barred the Icahn group from conducting a proxy contest at the airline’s 2024 annual meeting.
Icahn disclosed a stake
of about 10% in the airline in 2024, which had fallen to 3.32% as of August 20, 2026, according to his latest regulatory filing.
JetBlue said Icahn notified the airline the following day that his ownership had fallen below the level required to retain both board representatives, indicating he subsequently reduced the stake further.
Icahn previously said shares of JetBlue were undervalued, saying the airline represented an attractive investment opportunity. He has made a career of taking stakes in companies he views as undervalued and pushing for changes.
JetBlue shares closed at $6.07 on February 12, 2024, when Icahn publicly disclosed a 9.91% stake in the airline. They closed at $4.74 on August 20, when his latest regulatory filing showed the stake had fallen to 3.32%, about 22% below their level when his investment was disclosed.
JetBlue has faced a series of headwinds since 2024, including Pratt & Whitney engine-related aircraft groundings, high costs and the collapse of its proposed merger with Spirit Airlines.
More recently, the Iran war has driven up fuel prices, adding to cost pressures as the carrier works to return to sustained profitability while carrying a heavy debt load.
“We appreciate the constructive partnership with JetBlue over the years as they have reshaped the airline and we look forward to seeing them continue to successfully execute the JetForward strategy," Icahn said in a statement.
JetForward is the carrier's multi-year turnaround plan launched in 2024, to improve earnings by concentrating on profitable routes, expanding higher-margin products and tightening costs as the carrier seeks to return to profitability.
The carrier in July introduced a long-term profit target of at least $1 per share for 2028, adding that despite fuel costs, it remains on track to deliver $850 to $950 million in annual incremental EBIT by the end of next year.
“We appreciate the constructive contributions of Jesse and Steven as we established and began to execute our JetForward strategy,” CEO Joanna Geraghty said in a statement.
Jesse Lynn is general counsel of Icahn Enterprises and Steven Miller is a portfolio manager of Icahn Capital.
After their departures, the JetBlue board will be comprised of 11 members, 10 of whom are independent.
(Reporting by Megavarshini G. Somasundaram in Bengaluru, Doyinsola Oladipo in New York and Rajesh Kumar Singh in Chicago ; Editing by Leroy Leo, Cynthia Osterman and Stephen Coates)
