On Monday, billionaire investor Carl Icahn disclosed that he holds a nearly 10% ownership stake in JetBlue and stated that he believes the airline’s stock is currently priced lower than its true value. This announcement caused JetBlue’s stock to surge by as much as 19% in after-hours trading. This comes after a federal judge blocked JetBlue’s proposed merger with rival Spirit Airlines.

A recent disclosure showed that a 9.9% ownership in JetBlue was acquired through the purchase of shares from mid-January until this week. On Monday, stock closed with a more than 2% increase at $6.07 and later surged 19% in after-hours trading before stabilizing at just over $7 per share, representing a 16% increase from the closing price at 7:45 p.m. ET.

According to a recently filed document, billionaire investor Carl Icahn has purchased a stake in JetBlue Airways because he believes the airline’s stock is undervalued. Icahn plans to hold discussions with JetBlue’s management regarding a potential position on the company’s board. On Monday, shares of Icahn Enterprises, the investment firm owned by Icahn, closed up at $19.33 and later rose by nearly 2% in after-hours trading.

In early 2021, stock price of the company was approximately $20 per share, but it experienced a significant decline over the next two years. Currently, the stock is trading at a lower value compared to the start of the pandemic, hovering around $5 for the past three months. It has implemented cost-cutting strategies such as reducing routes, offering staff buyouts, and deferring $2.5 billion in aircraft spending.