Why the Frontier-Spirit Deal Lifted the Whole Airline Industry Monday
The stock market opened the new week on a positive note, with investors seeing some continued volatility but ending up pleased with the market's advance by mid-afternoon. As of 3 p.m. ET, the Dow Jones Industrial Average (DJINDICES: ^DJI) was up 180 points to 35,269. The S&P 500 (SNPINDEX: ^GSPC) climbed 12 points to 4,513, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) picked up 26 points to 14,124.
Falling stock prices often tempt companies to enter into strategic acquisitions, and the latest pair of companies to decide on a merger came from the airline industry. Specifically, Spirit Airlines (NYSE: SAVE) and Frontier Group Holdings (NASDAQ: ULCC) made a move that lifted both of their stocks. Indeed, even with the impact on the competitive environment across the industry, most of the two companies' airline peers also moved sharply higher. Below, we'll look more closely at what helped the industry move higher on Monday and why Spirit and Frontier's competitors aren't necessarily going to get hurt from the deal.
Image source: Getty Images.
Source Fool.com
