Why Spirit Airlines Shares Are Falling Today
Late in the day on Tuesday, Spirit Airlines (NYSE: SAVE) shares jumped more than 20% after word leaked that JetBlue Airways (NASDAQ: JBLU) had submitted a bid to buy the discount airline. Overnight, analysts voiced some skepticism about the bid, causing shares of Spirit to fall as much as 6% on Wednesday morning.
After a tough 18 months riding out the pandemic, animal spirits are alive and well in the airline industry. In February, discounter Frontier Group Holdings (NASDAQ: ULCC) announced plans to acquire Spirit for about $2.9 billion in cash and stock. But there are just not many potential targets out there for follow-on deals, which might be why JetBlue on Tuesday instead went public with a plan to break up that Frontier/Spirit deal with its own offer.
Image source: Spirit Airlines.
Source Fool.com
