Spirit Airlines’ stock tumbles after JetBlue warning that merger deal may need to be terminated

Shares of Spirit Airlines Inc.
SAVE,
+1.69%
tumbled 10.9% in premarket trading Friday, after JetBlue Airways Corp.
JBLU,
+5.33%
warned that the merger may need to be terminated. JetBlue’s stock rallied 3% ahead of the open. In an 8-K filing with the Securities and Exchange Commission, JetBlue disclosed that it informed Spirit that “certain closing conditions” required by the air carriers’ merger deal “may not be satisfied” before the agreed upon deadline. As a result, JetBlue informed Spirit that “the merger agreement may be terminable on and after January 28, 2024.” JetBlue said it continues to evaluation its options regarding the merger deal. Spirit’s stock had plunged to a record low of $5.70 on Jan. 18, as a court ruling that blocked the carriers’ merger fueled concerns about Spirit’s viability if the merger isn’t completed.