Low-cost airlines climb amid report that Spirit Airlines could liquidate as soon as this week
Shares of low-cost US airlines Frontier and JetBlue are up more than 3% in premarket trading following a Wednesday evening report that rival Spirit Airlines could liquidate as early as this week.
Spirit, which has made efforts to emerge from its bankruptcy filed in August, has reportedly been pummeled by elevated jet fuel prices.
JetBlue reached a deal to acquire Spirit in 2022, but it was blocked in 2024 on antitrust grounds. Bloomberg reported that Frontier had been in talks to merge with Spirit in December.
Jet fuel prices have squeezed the industry since the days leading up to the war in Iran. This month, most major US carriers hiked their bag fees in an attempt to offset some of the cost.
Lower oil prices are also moderately boosting airline stocks on Thursday morning. West Texas Intermediate crude futures were down about 3% as of 8:30 a.m. ET.
JetBlue reached a deal to acquire Spirit in 2022, but it was blocked in 2024 on antitrust grounds. Bloomberg reported that Frontier had been in talks to merge with Spirit in December.
Jet fuel prices have squeezed the industry since the days leading up to the war in Iran. This month, most major US carriers hiked their bag fees in an attempt to offset some of the cost.
Lower oil prices are also moderately boosting airline stocks on Thursday morning. West Texas Intermediate crude futures were down about 3% as of 8:30 a.m. ET.
