Feb 13 Reuters Shares of JetBlue Airways surged on Tuesday after activist investor Carl Icahn said he took a stake of nearly 10 in the lowcost carrier.

JetBlue39;s shares were up 14.7 in late morning after Icahn said his company had been in discussion with the airline about possible board representation.

Icahn, in a filing, called shares of JetBlue undervalued, saying the airline represented an attractive investment opportunity. He has made a career out of buying companies he sees as undervalued. The JetBlue purchase is one of his first big moves in 2024.

We are always open to constructive dialogue with our investors, JetBlue said on Tuesday.

Analysts at Deutsche Bank said Icahn39;s investment in the U.S. airline industry reinforces their view that the sector will likely undergo more restructuring beyond previously announced mergers.

JetBlue39;s earnings have been under pressure due to higher operating costs and uneven travel demand. Its new CEO, Joanna Geraghty, has vowed aggressive action to return the airline to profitability.

As part of the plan, JetBlue has deferred about 2.5 billion in planned aircraft capital expenditure and is also planning to cut costs through buyouts to employees in corporate, airports, and customer support functions.

It is also trying to drive its ancillary revenue in a bid to generate an extra 300 million in revenue this year.

The company39;s 3.8 billion deal to acquire Spirit Airlines, however, has been a bigger concern for some…