Why Spirit Airlines Was Able to Gain Altitude in the First Half of 2022
Airlines were among the casualties in a dismal first half of the year for stocks, but Spirit Airlines was a noticeable exception. Shares of Spirit were up 9.1% in the first six months of 2022, according to data provided by S&P Global Market Intelligence, significantly outperforming the S&P 500's 20.6% fall.
Spirit is a so-called "ultra-low-cost carrier" that has historically been the subject of late-night comedian jokes about its cut-rate fares and reputation for charging for frills other airlines include in the price. But a lot of execs in the airline industry apparently see value in this brand, sparking a bidding war for control of Spirit.
In February, Spirit agreed to be acquired by Frontier Group Holdings in a cash and stock deal worth about $24 per share at the time. In April, JetBlue Airways followed with its own $33 per-share cash deal, throwing the future of Spirit in doubt.
Source Fool.com
