Spirit Airlines shares spike 20% after report says JetBlue made bid https://www.cnbc.com/2022/04/05/spirit-airlines-shares-spike-20percent-on-report-jetblue-has-made-bid-to-buy-airline.html?__source=androidappshare
Spirit confirmed later Tuesday that JetBlue had made an unsolicited offer.
Trading in Spirit was halted before the market close. Its shares were at $26.93.
JetBlue’s bid, reported by The New York Times, comes less than two months after Spirit and budget rival Frontier Airlines agreed to combine into a discount airline behemoth. The newspaper cited three people with knowledge of the matter.
JetBlue, Spirit and Frontier didn’t immediately comment to CNBC.
New York-based JetBlue bid $3.6 billion for Spirit, about 40% over Frontier’s cash and share offer for Spirit in February, according to the Times.
JetBlue shares closed down about 7%.
Spirit and Frontier both solely fly planes in the Airbus A320 family. Those make up the majority of JetBlue’s fleet, which would reduce costs and logistical headaches in combining the carriers.
JetBlue has a partnership with American Airlines that allows the carriers to coordinate service in the Northeast U.S. The two airlines said the agreement would give them a better chance to compete against United and Delta Air Lines in crowded airports in New York and Boston.
The Justice Department sued to block that partnership last year.
American declined to comment on JetBlue’s offer.
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