Apr 6, 2022 - Economy

JetBlue offers to buy Spirit Airlines

Credit: Axios Visuals

JetBlue (Nasdaq: JBLU) on Tuesday made an unsolicited $3.6 billion takeover bid for Spirit Airlines (NYSE: SAVE), which previously agreed to merge with fellow low-cost carrier Frontier (Nasdaq: ULCC).

  • The all-cash bid is at a 33% premium to Frontier's cash-and-stock offer.
  • It also would prompt an intensive antitrust review, particularly as JetBlue already is dealing with a Justice Department suit over its partnership with American Airlines.
  • If JetBlue does manage to get this deal done, expect some of its major carrier rivals to seek out new acquisitions of their own.
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