Why Spirit Airlines Flew Higher This Week
On Monday, Spirit Airlines (NYSE: SAVE) announced plans to combine with Frontier Group Holdings (NASDAQ: ULCC) to create a new U.S. discount titan. Investors are excited about the deal, sending Spirit shares up 27% for the week as of Friday morning trading.
Frontier and Spirit have similar "ultra-low cost" business models, offering rock-bottom fares but few frills. And while there is some overlap, combining Frontier's western focus with Spirit's heavy East Coast and Caribbean exposure creates a more national carrier. The combined airline would be the fifth largest in the U.S.
Image source: Spirit Airlines.
Source Fool.com
