Spirit Airlines, Inc. ("Spirit") (NYSE: SAVE) has announced the termination of its merger agreement with JetBlue Airways Corporation. The termination was by mutual agreement due to regulatory obstacles that would not permit the timely closing of the transaction.
As part of the termination, JetBlue will pay Spirit $69 million. During the period when the merger agreement was in effect, Spirit stockholders received approximately $425 million in total prepayments.
While the merger agreement with JetBlue has been terminated, Spirit is confident in its strengths and is focused on returning to profitability. The company is taking prudent steps to ensure the strength of its balance sheet and ongoing operations, including assessing options to refinance upcoming debt maturities.
Despite the termination of the merger agreement, Spirit remains committed to delivering the best value in the sky. The company's Fit Fleet® is one of the youngest and most fuel-efficient in the United States, serving destinations throughout the U.S., Latin America, and the Caribbean.
As Spirit moves forward independently, it is evaluating and implementing several initiatives to bolster profitability and elevate the guest experience. The company's President and Chief Executive Officer, Ted Christie, expressed confidence in the future of Spirit as a successful independent airline, stating, "As we go forward, I am certain our fantastic Spirit team will continue delivering affordable fares and great experiences to our Guests."
Following these announcements, the company's shares moved -11.9%, and are now trading at a price of $5.69. For the full picture, make sure to review Spirit Airlines's 8-K report.
