This week, JetBlue Airways (NASDAQ: JBLU) made public its plan to try to disrupt the planned merger between Frontier Group Holdings (NASDAQ: ULCC) and Spirit Airlines (NYSE: SAVE) . But bidding wars tend to work out better for the targets than for the bidders, and investors in JetBlue and Spirit had very different reactions to the news.
As of Thursday afternoon, shares of Spirit were up 20% for the week, while shares of JetBlue were down by a similar percentage.
The animal spirits on Wall Street have begun to move airline stocks again after a tough couple of years for the industry. In February, ahead of an expected rebound in travel demand, Frontier and Spirit announced plans to combine in a deal under which Spirit shareholders would get a combination of cash and Frontier stock. At current prices, Spirit shareholders were set to receive about $24 per share for their stock.
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Why Shares of JetBlue and Spirit Airlines Flew In Opposite Directions This Week