Spirit Airlines on Tuesday said it received an unsolicited offer from JetBlue Airways for about $3.6 billion, potentially snarling merger plans between Frontier Group Holdings and Spirit.
Shares of Spirit rose 22%, their highest level since mid-February. Airline stocks have suffered as air travel fell-off dramatically during the COVID-19 lockdowns.
Spirit’s 52-week high of $39.19 is $6 above the reported offer from JetBlue of $33 per share.
Earlier, the New York Times reported
the $33 a share JetBlue offer, citing people with knowledge of the matter.
Spirit declined to comment beyond a written statement. Frontier and JetBlue, the sixth largest U.S airline, did not immediately comment. The US Justice Department, which would review any merger proposal, declined to comment.
In February, Frontier Airlines announced it was buying its rival low-cost carrier Spirit for $2.9 billion in cash and stock as part of a deal that will create the fifth-largest US airline.