Frontier, JetBlue Airways jump on report government bailout deal for Spirit falls apart

Frontier group

01/05/2026 16:50

** Shares of low-cost carrier Frontier ULCC.O and New York-based JetBlue Airways JBLU.O surge 13.4% and 7.6%, respectively

** Low-cost carrier Spirit Airlines is preparing to shut down as a rescue deal from the government falls apart, the Wall Street Journal reports

** Reuters reported last week that a bailout deal from the government's offer included $500 million ⁠in ​financing and a condition that the government gets warrants equal ​to 90% of Spirit's equity

** Airline stocks fell when news of the bailout first emerged

** ULCC down ~13%, while JBLU up 13% YTD

 (Reporting by Nandan Mandayam in Bengaluru)

 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))