Why Frontier Stock Is Flying High Today
Spirit Airlines (NYSE: SAVE), the discount airline that at one time had agreed to be acquired by Frontier Group Holdings (NASDAQ: ULCC) before jilting Frontier for another, is being forced to fly alone. Investors are rallying into Frontier shares on the news, sending the stock up 11% as of 3 p.m. ET.
Frontier's business plan was borrowed from Spirit, and when the two airlines announced plans to merge in February 2022 to create the nation's fifth-largest airline, there was a lot of excitement about the combination. But those plans were thwarted by JetBlue Airways (NASDAQ: JBLU), which stepped in with a bid of its own and ended up with an agreement to buy Spirit.
Frontier warned during the bidding war that regulators would likely frown on a JetBlue/Spirit combination, and that prediction proved accurate. On Monday, JetBlue and Spirit abandoned their merger plans after the U.S. government successfully sued to block the combination.
Source Fool.com
Jetblue Airways Corp. Stock
The sentiment is rather negative at the moment with 12 Sell predictions and 1 Buy predictions.
A potential of -29.04%, resulting from comparing the current price of 4.23 € with the target price of 3 € for Jetblue Airways Corp., shows the chance of incurring significant losses.
