Spirit Airlines CEO Says 'We Are Disappointed' After JetBlue Deal Fails
Portfolio Pulse from Piero Cingari
JetBlue Airways Corporation (JBLU) terminated its $3.8 billion acquisition deal with Spirit Airlines Inc. (SAVE) due to a legal blockade by the Department of Justice, citing antitrust concerns. JetBlue will pay Spirit a $69-million termination fee. The decision is seen as a victory for consumer protection, aiming to preserve competitive fares and choices. Following the announcement, JetBlue's shares increased by 4.3%, while Spirit's shares dropped nearly 11%. The U.S. Global Jets ETF (JETS) remained unchanged, and Frontier Group Holdings Inc. (ULCC) saw an 11% increase.
March 04, 2024 | 9:16 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Spirit Airlines' stock dropped nearly 11% following the termination of the acquisition deal with JetBlue.
The significant drop in Spirit's stock price likely reflects investor disappointment and concerns over the airline's future prospects as an independent entity.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
The U.S. Global Jets ETF (JETS) remained broadly unchanged following the announcement of the terminated deal between JetBlue and Spirit.
The unchanged position of the JETS ETF suggests that the market had already priced in the potential outcomes of the deal, or that the impact was balanced across the sector.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
JetBlue's termination of the Spirit acquisition deal led to a 4.3% increase in its stock price.
The termination of the deal, while costly due to the termination fee, may have been viewed positively by investors as it removes uncertainty and potential regulatory hurdles.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Frontier Group Holdings Inc. (ULCC) saw an 11% increase in stock price on the day of the announcement.
The increase in ULCC's stock price could be attributed to market perception that Frontier may benefit from the failed merger, potentially gaining market share or facing less competitive pressure.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 50