Spirit Airlines Bidding War: Is Now Time to Buy?
As the pandemic hit in early 2020, airlines cut back staff, current pilots retired, and fewer new pilots started their training . Those shortages have now left carriers scrambling to keep up with rebounding travel demand, and driven smaller airlines to merge with or buy rivals to make the most of a pared-back staff and surging customer base. Both JetBlue (NASDAQ: JBLU) and Frontier (NASDAQ: ULCC) are bidding hard for Spirit Airlines (NYSE: SAVE) in this mad dash for consolidation. This battle between midsize carriers stands to make either of the bidders stronger and more secure in the future -- but now just might be the right time to get in on shares of Spirit before a winner emerges.
Image Source: Getty Images
Mid-size carriers lack the soaring market caps and cash reserves of their bigger airline brethren, but the belt-tightening of the past few years has left them running leaner operations with an eye toward expansion on the horizon. Consolidation means a more diverse and numerous fleet, access to additional airports, and a reduction in overall competition in markets where both carriers currently exist.
Source Fool.com
