Why JetBlue Shares Are Falling Today
JetBlue Airways (NASDAQ: JBLU) wants to buy Spirit Airlines (NYSE: SAVE), and analysts are not sure what to think of the offer. On Wednesday, investors reacted by sending shares of JetBlue down as much as 9.6% as of 1 p.m. ET.
It's been a rough few years for the airline industry, hit first by the pandemic and more recently by rising fuel prices. But conditions are slowly looking better, and airlines are beginning to focus on a recovery.
With that in mind, Frontier Group Holdings (NASDAQ: ULCC) in February announced plans to acquire Spirit for $2.9 billion in cash and stock. Frontier and Spirit have similar business models, and Frontier said the merger would give it the bulk it needs to compete against airline giants and also help ease concerns about pilot shortages.
Source Fool.com
