JBLU - Why Spirit Airlines Stock Is Taking Flight Today
2024-01-19 12:19:36 ET
On Friday, Spirit Airlines (NYSE: SAVE) told investors that it's still working to complete its deal with JetBlue Airways (NASDAQ: JBLU) and outlined its options should the deal not proceed. Investors were encouraged by the update, sending shares of Spirit up 24% as of 11:30 ET Friday.
Spirit has been flying through turbulence of late. In 2022, it agreed to be acquired by JetBlue, but antitrust regulators went to court to try to get the deal blocked. Earlier this week, a judge sided with the Justice Department and granted an injunction against the merger, putting the deal, and Spirit's future, in doubt.
Spirit has about $1.1 billion in debt coming due by 2025, and few good options to refinance it. The company is also dealing with an engine shortage related to issues at manufacturer RTX , and faces the potential for weakening demand for travel due to economic uncertainty and higher interest rates.
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Why Spirit Airlines Stock Is Taking Flight Today