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
Currently there is a rather negative sentiment for Jetblue Airways Corp. with 1 Buy predictions and 4 Sell predictions..
A slightly negative potential of -7.13% at a current price of 5.38 € for Jetblue Airways Corp. is the result of a target price of 5 €.
