Failed JetBlue takeover could force Spirit to slash fares, restructure as carrier grasps for a path
JBLUJetBlue(JBLU) CNBC·2024-01-18 03:43

Spirit Airlines is on shaky footing after JetBlue Airways' proposed 3.8billiontakeoverofthebudgetcarrierwasblockedbyafederaljudgethisweek.Industry−watcherssaythecarriercouldbeforcedtocutitsalreadylowfaresevenmore.SomeWallStreetanalystsarguethediscountcarriercouldhavetorestructure,ifnotliquidate.Spirit′ssharesfell473.8 billion takeover of the budget carrier was blocked by a federal judge this week. Industry-watchers say the carrier could be forced to cut its already low fares even more. Some Wall Street analysts argue the discount carrier could have to restructure, if not liquidate. Spirit's shares fell 47% after the decision was issued Tuesday. They were down another 23% on Wednesday, notching a new record low of 5.74 a share. Spirit, whose last pr ...