Activist investor Carl Icahn has secured two seats on the board at JetBlue Airways after revealing a 10% stake in the airline and then striking a deal that averts a potential proxy fight, according to reports.

Jesse Lynn, General Counsel at Icahn Enterprises, and Steven Miller, Portfolio Manager at Icahn Capital, will now join JetBlue's board, initially as non-voting observers before being given full voting rights after the airline's shareholder meeting later this spring.

JetBlue's decision takes its board to 13 members and comes just days after Icahn revealed his holding in the company, making him its third largest shareholder. In a related regulatory filing, he described the shares as "undervalued" and indicated his intention to seek "board representation".