Spirit Airls Inc Stock Price, News & Analysis

Spirit Airlines continues to recommend stockholders vote FOR the merger with Frontier Group Holdings despite ISS's opposition. The ISS report highlights the strategic rationale of the Frontier deal and questions JetBlue's proposal, labeling it as defensive and opportunistic. Spirit's President argues that JetBlue's offer carries significant regulatory risks and insufficient value for stockholders. The merger with Frontier could create $500 million in annual synergies, while stockholders would not see cash from JetBlue for potentially two years.

On May 23, 2022, Spirit Airlines (NYSE: SAVE) announced that its Board of Directors has rejected JetBlue Airways Corporation's (NASDAQ: JBLU) unsolicited tender offer. Instead, the Board continues to recommend that stockholders vote for a merger with Frontier Group Holdings, Inc. (NASDAQ: ULCC), expected to close in the latter half of 2022, pending regulatory review and shareholder approval. The company will host a conference call at 4:30 p.m. ET to discuss this decision with analysts. Spirit has also filed a statement with the SEC regarding the tender offer for investor awareness.

Spirit Airlines' Board of Directors unanimously recommends stockholders not to accept JetBlue's unsolicited tender offer of $30 per share, citing significant regulatory hurdles and a lack of advantages over the ongoing merger with Frontier Airlines. The Board believes that JetBlue's proposal is not in the best interests of Spirit's shareholders, especially under the current Northeast Alliance with American Airlines. Spirit asserts that the merger with Frontier will provide substantial long-term value and operational synergies, while JetBlue's offer poses risks without adequate protections for shareholders.

Spirit Airlines has confirmed JetBlue's unsolicited tender offer to acquire all outstanding shares at $30 per share. The Spirit Board is evaluating the offer and advises stockholders to refrain from action until its review is complete. A formal position will be communicated within ten business days via a SEC filing. Spirit's Board previously deemed JetBlue's earlier proposals as not superior to its merger with Frontier. Financial and legal advisors are assisting in the evaluation.

JetBlue (JBLU) has launched a fully financed cash tender offer to acquire Spirit Airlines (SAVE) at $30 per share, representing a 60% premium over Spirit's transaction with Frontier. JetBlue criticizes Spirit's Board for rejecting its superior proposal without constructive engagement, arguing that Spirit's antitrust claims are unfounded. JetBlue's offer not only provides immediate cash value but also includes a commitment to regulatory compliance and a reverse break-up fee. Spirit shareholders are urged to vote against the Frontier merger at the upcoming special meeting on June 10, 2022.

Spirit Airlines (NYSE: SAVE) reported a challenging first quarter 2022, with a net loss of $194.7 million, or $(1.79) per diluted share. Despite a 19.2% increase in capacity and 13.0% growth in total operating revenues to $967.3 million compared to Q1 2019, operational disruptions and rising costs hindered profitability. Non-ticket revenue per passenger segment reached a record high of $64.53, a 14.8% increase from Q1 2019. The company maintained a liquidity position of $1.6 billion, anticipating improved yields in Q2 2022 amidst ongoing challenges.

Spirit Airlines' Board has unanimously rejected JetBlue's unsolicited proposal as a 'Superior Proposal' in favor of its merger with Frontier Airlines. The Board believes that the ongoing transaction with Frontier maximizes shareholder value, despite JetBlue's plans for acquisition. Concerns about the likelihood of antitrust clearance due to JetBlue's Northeast Alliance with American Airlines were highlighted as a significant risk. The merger with Frontier is anticipated to close in the second half of 2022, pending regulatory approval and shareholder consent.

JetBlue (NASDAQ: JBLU) has enhanced its proposal to acquire Spirit Airlines (NYSE: SAVE) by offering $33 cash per share, representing a 47% premium over the Frontier deal. Key commitments include divestiture of assets to alleviate regulatory concerns and a $200 million reverse break-up fee if the transaction does not close due to antitrust issues. JetBlue asserts that this offer presents greater certainty and value compared to Frontier's proposal, which lacks similar regulatory protections. This acquisition aims to create a more competitive airline landscape.

Spirit Airlines has launched its first nonstop flight from Manchester-Boston Regional Airport (MHT) to Myrtle Beach International Airport (MYR) as of April 20, offering travelers a direct route to South Carolina's beaches. This seasonal service, which increases available seats by 25% through the upgraded A320 aircraft, coincides with New Hampshire's spring break and summer travel season. Previously, routes to Tampa and Fort Myers were replaced due to popularity. The airline celebrates this milestone with a ticket giveaway event, enhancing leisure travel options for New Hampshire residents.