Shares of JetBlue Airways Corporation and Frontier Group Holdings Inc moved higher in pre-market trading on Monday after Spirit Airlines announced it had ceased operations over the weekend.
JetBlue was up more than 4.1% in early trading while Frontier gained roughly 4%, with both carriers extending the upward moves they began on Friday.
Spirit, which operated as an ultra-low-cost carrier, said in a notice posted on its website early Saturday that it was shutting down after suffering years of losses. In the statement the company told customers: "To our Guests: all flights have been cancelled, and customer service is no longer available," and added, "We are proud of the impact of our ultra-low-cost model on the industry over the last 34 years and had hoped to serve our Guests for many years to come."
The shutdown removes more than 15,000 employees from Spirit’s payroll, leaving them without jobs as the carrier stopped flying.
JetBlue and Frontier, along with other U.S. airlines, announced plans to assist passengers affected by the cancellations and disrupted travel plans. The companies said they would offer help to rebook or accommodate travelers whose itineraries were impacted by Spirit’s closure.
Market observers noted the immediate stock-market reaction in pre-market hours, with investors pushing JetBlue and Frontier higher on expectations that demand and routes previously served by Spirit could be absorbed by competing carriers.
Below are the key developments from the weekend and the market response:
- Spirit Airlines announced an immediate shutdown early Saturday after years of financial losses, cancelling all flights and disabling customer service.
- More than 15,000 Spirit employees are now without jobs as a result of the carrier's closure.
- JetBlue and Frontier shares rose in pre-market trading on Monday, up over 4.1% and roughly 4%, respectively, extending gains from Friday.
The situation remains fluid for affected passengers and employees while competing airlines coordinate assistance for stranded travelers. The company statement and the market moves provide the primary publicly available details at this time.