JetBlue Wants to Acquire Spirit Airlines For Up to $3.6 Billion
JetBlue Airways executives on Wednesday said acquiring Spirit Airlines is the airline’s ticket to growth and a shot at better competing against larger rivals.
The $3.6 billion all-cash bid, which Spirit called “unsolicited,” casts doubt on the latter’s planned tie-up with Frontier Airlines, which the carriers announced in February. Spirit shares surged more than 22% on Tuesday after news of JetBlue’s offer broke, but fell more than 2% Wednesday, while JetBlue dropped nearly 9% and Frontier shed 11%.
The triangle between the carriers shows appetite for consolidation of midsize carriers, particularly those that compete for price-conscious leisure travelers. That segment of the market has become even more important in the Covid pandemic, which devastated international and corporate travel.
