FAQs
Spirit’s financial future is on the rocks after failed JetBlue merger, says Northeastern expert? ›
JetBlue will pay Spirit a $69 million termination fee, but the low-cost airline company still faces financial difficulty and could go bankrupt, explains Ravi Sarathy, a Northeastern professor of international business and strategy. That could mean less options for travelers looking to save on airplane tickets.
What happens to Spirit stock after JetBlue merger? ›No Saving Spirit. Airlines Stock Descends 10% After $3.8 Billion Merger Called Off. Spirit Airlines (SAVE) stock fell early Monday after the company and JetBlue (JBLU) announced an agreement to end their nearly $4 billion merger bid. JBLU shares angled higher on the news.
Is Spirit Airlines in financial trouble? ›Spirit Airlines CEO Ted Christie confirmed that the airline is not considering Chapter 11 bankruptcy. The airline is addressing financial pressures through debt restructuring and cost-cutting measures. Spirit has implemented strategic changes like eliminating most change and cancellation fees to restore profitability.
Is the JetBlue merger approved for Spirit? ›WASHINGTON, March 4 (Reuters) - JetBlue Airways (JBLU. O) , opens new tab and Spirit Airlines (SAVE. N) , opens new tab scrapped their $3.8-billion merger agreement on Monday, with the low-cost carriers saying there was no path forward after a U.S. judge blocked the deal in January on anti-competition concerns.
Why does the US Justice Department want to stop the merger of Spirit Airlines and JetBlue Airways? ›“The Justice Department proved in court that a merger between JetBlue and Spirit would have caused tens of millions of travelers to face higher fares and fewer choices. We will continue to vigorously enforce the nation's antitrust laws.”
What will happen to Spirit? ›After calling off the merger on Monday, Spirit said it is confident in its strengths and is focused on returning to profitability. Industry experts say Spirit needs to do more. Excess capacity in key markets is hurting Spirit's pricing power, forcing the airline to discount heavily to fill planes.
Does JetBlue still have to pay Spirit? ›As part of the termination, JetBlue will pay Spirit $69 million. While the merger agreement was in effect, Spirit stockholders received approximately $425 million in total prepayments. Spirit Airlines (NYSE: SAVE) is committed to delivering the best value in the sky.
Is JetBlue in financial trouble? ›S&P downgraded JetBlue's ratings from "B" to "B-", citing concerns about its financial health. The agency expects JetBlue's funds from operations to debt ratio — a leverage ratio used to assess financial risk — to remain in the low single digits through 2025, with negative net cash flow from business operations.
What is the controversy with Spirit Airlines? ›Always on the brink of insolvency, the airline's never-ending search for cost savings has made it notorious for pioneering unpopular practices such as restricting refunds, shrinking seats, and, most controversially, charging for even the most basic amenities.
Is Spirit Airlines less safe than others? ›In fact, recent data from the Jet Airliner Crash Data Evaluation Centre (JACDEC) indicates that Spirit Airlines ranks among the top 25 safest airlines globally.
Who blocked the JetBlue Spirit merger? ›
In January, a federal district judge in Boston sided with the government and blocked the deal, saying it violated antitrust law.
Why couldn't JetBlue buy Spirit? ›JetBlue Airways is ending its quest to buy Spirit Airlines more than a month after a federal judge blocked the $3.8 billion deal because of antitrust concerns.
Did JetBlue cancel the Spirit deal? ›JetBlue and Spirit Airlines cancel $3.8bn merger after judge blocked deal. Low-cost air carriers JetBlue Airways and Spirit Airlines canceled their $3.8bn merger agreement on Monday, seeing no path forward after a US judge blocked the deal in January on anti-competition concerns.
Will JetBlue and Spirit appeal? ›BOSTON, Feb 2 (Reuters) - A U.S. appeals court on Friday said it would hear arguments in June in a bid by JetBlue Airways (JBLU. O) , opens new tab and Spirit Airlines (SAVE.
Why did judge Block Spirit Airlines? ›Spirit Airlines stock fell 23% and JetBlue Airways dropped nearly 9% Wednesday and after a federal judge blocked their proposed merger due to concerns that it would monopolize the industry. JetBlue, the nation's sixth-largest airline, sought to buy Spirit, the seventh-largest, for $3.8 billion.
Should I sell Spirit Airlines stock? ›Spirit Airlines's analyst rating consensus is a Moderate Sell. This is based on the ratings of 9 Wall Streets Analysts.
How much is Spirit JetBlue merger share price? ›On July 28, 2022, Spirit agreed to be acquired by JetBlue for cash consideration of $33.50 per share, or $3.8 billion. Inclusive of net debt, the transaction at announcement had an enterprise value of $7.6 billion.
Will JetBlue stock go up after merger? ›In a regulatory filing on Monday, JetBlue acknowledged that its indebtedness following the merger will be substantially higher and could increase borrowing costs. Yet the company last month said the merger agreement remained in effect. JetBlue's stock has gained 36% since the merger ruling.
How low will Spirit stock go? ›The stock lies in the middle of a wide and falling trend in the short term and further fall within the trend is signaled. Given the current short-term trend, the stock is expected to fall -31.18% during the next 3 months and, with a 90% probability hold a price between $1.62 and $1.91 at the end of this 3-month period.