Frontier, JetBlue Stocks Soar on Report of Spirit Airlines Bankruptcy Talks

Group 1 - Shares of discount airlines Frontier Group Holdings and JetBlue Airways surged following reports that Spirit Airlines is in discussions regarding a potential bankruptcy filing [1] - Spirit Airlines' shares plummeted 25% after the news, reaching an all-time low, while Frontier's shares increased by 21% and JetBlue's by 14% [1] - Spirit Airlines is reportedly negotiating with bondholders and creditors about a Chapter 11 filing, although such a filing is not expected to be imminent [1] - The airline has been struggling with losses and declining revenue due to increased competition from both low-cost and larger airlines [1] - Spirit Airlines previously attempted a $6.6 billion merger with Frontier in 2022, which failed, and a subsequent takeover by JetBlue also fell through due to regulatory antitrust challenges [1] - A spokesperson for Spirit Airlines indicated that the company is engaged in discussions with bondholders to address upcoming debt maturities, but did not provide further details [1] Group 2 - The news of Spirit Airlines' potential bankruptcy discussions positively impacted shares of major airlines such as American Airlines, Delta Air Lines, Southwest Airlines, and United Airlines, which also saw increases [1]