Why Spirit Airlines Shares Are Flying High Today

Shares of Spirit Airlines (NYSE: SAVE) soared more than 13% higher at the open on Monday after the discount airline announced plans to combine with Frontier Group Holdings (NASDAQ: ULCC). Spirit also released better-than-expected fourth-quarter results, adding to investor enthusiasm.

On Monday, Spirit and Frontier announced plans to combine in a deal valued at about $6.6 billion. Terms of the deal call for Spirit shareholders to receive 1.9126 shares of Frontier and $2.13 in cash for each share they own, giving Spirit an implied value of about $25.83 per share. That's well-above Spirit's $21.73 closing price on Friday.

Image source: Spirit Airlines.

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Source Fool.com