Why JetBlue Shares Are Up Today
Spirit Airlines (NYSE: SAVE) has once again rebuked a takeover overture from JetBlue Airways (NASDAQ: JBLU), despite JetBlue's willingness to pay a higher price than Spirit merger partner Frontier Group Holdings (NASDAQ: ULCC). JetBlue investors appear pleased with the development, sending shares of the airline up 5% on Thursday afternoon.
Spirit and Frontier announced plans to merge back in February, but in April JetBlue stepped in with its own offer to acquire Spirit. The airline industry is facing a shortage of pilots, which limits growth opportunities, and both Frontier and JetBlue are hoping to use mergers and acquisitions to bulk up.
Image source: JetBlue Airways.
Source Fool.com
