Why Spirit Airlines Stock Is Losing Altitude Today
The planned acquisition of Spirit Airlines (NYSE: SAVE) by JetBlue Airways (NASDAQ: JBLU) is officially off, and investors are worried about what comes next for Spirit. Shares of the discount airline traded down 14% as of 10 a.m. ET Monday as investors decided they'd rather not go along for the ride.
JetBlue and Spirit agreed to combine in July 2022 after JetBlue won a bidding war against Frontier Group Holdings. Frontier had argued that a JetBlue/Spirit tie-up would invite intense regulatory scrutiny, but JetBlue was the higher bidder.
The regulatory issues ended up being a dealbreaker. Earlier this year, a federal judge sided with the government on questions about whether a JetBlue/Spirit combination would limit competition. The two airlines were appealing that decision, but with a deadline fast approaching to complete the deal they are instead waving the white flag.
Source Fool.com
Jetblue Airways Corp. Stock
The sentiment is rather negative at the moment with 12 Sell predictions and 2 Buy predictions.
A potential of -40.26%, resulting from comparing the current price of 5.02 € with the target price of 3 € for Jetblue Airways Corp., shows the chance of incurring significant losses.
