Why Airline Stocks Like JetBlue and Frontier Are Soaring Today
Shares of Frontier Airlines parent Frontier Group Holdings (NASDAQ: ULCC) are up 18% as of midday Friday, followed closely by JetBlue Airways' (NASDAQ: JBLU) 16% surge. Both rallies are in response to reports that rival carrier Spirit Airlines (NYSE: SAVE) is considering filing for bankruptcy. If true, it could mean the sale of part or all of the struggling airline.
Take the report with a grain of salt, as it did not come from the company itself. Rather, the Wall Street Journal suggested the possibility on Thursday evening, only citing "people familiar with the matter" as its source.
Still, it's a credible possibility. Spirit CEO Ted Christie conceded following the company's disappointing second-quarter results that it was in conversations with bondholders regarding the then-upcoming maturity of much of its debt. In no real position to repay this principal or even refinance these loans then -- Standard Poor's downgraded the airline's bonds from a rating CCC+ to just CCC, or "junk" status, in June -- the carrier's not likely in any better position to do so now.
Source Fool.com
Jetblue Airways Corp. Stock
With 9 Sell predictions and only 1 Buy predictions the community sentiment for Jetblue Airways Corp. is rather negative.
A slightly negative potential of -18.07% at a current price of 3.66 € for Jetblue Airways Corp. is the result of a target price of 3 €.
