Skepticism on Wall Street as details emerge on JetBlue's bid for Spirit
Wall Street and aviation insiders reacted with skepticism Wednesday following the surprise news a day earlier that JetBlue planned to make a bid to acquire ultra-low-cost Spirit Airlines.
JetBlue held a conference call with analysts and media Wednesday morning to provide initial details surrounding the bid and the airline's vision for the proposed merger.
"JetBlue and Spirit will be better positioned to challenge the big four, creating value for both of their shareholders, customers, crew members and team members and other stakeholders," CEO Robin Hayes said. "The proposed combination accelerates JetBlue's strategic plan, turbocharging our focus city strategy, securing valuable access to aircraft and airport infrastructure for future growth and further diversifying our network."
The bid, which Spirit characterized as "unsolicited," comes weeks after Spirit and Frontier announced plans to merge, and could cast doubt on the future of that deal.
At first look, a JetBlue-Spirit tie-up has raised questions. The airlines offer radically different experiences on board and tout very different value propositions for their respective brands. Both target leisure passengers, though Spirit is known for low base fares with lots of add-on extras while JetBlue is known for relatively simple fares and free perks that include in-flight TV and Wi-Fi.
That's led some to speculate that JetBlue's bid is intended as a defensive move, meant to raise costs for Frontier, rather than a serious bid. Or as one analyst put it to CNBC: "Wait; what?"
Indeed, there was a tone of mild incredulity during the investor conference call.
"I'm just trying to square away how removing seats right now is pro-consumer over the long haul," Connor Cunningham of MKM Partners asked, referring to the removal of capacity from the market as Spirit's dense A320 family aircraft get converted to JetBlue's less-dense configuration.
Now what? Does JetBlue's bid for Spirit put its American Airlines partnership at risk?
While customers might be happy with fewer seats, Wall Street sees reduced revenue-earning potential. Even even pro-consumer advocates would agree reducing capacity across Spirit's entire fleet is only likely to put upward pressure on fares.
"We still have myriad questions, but our initial take – in contrast to certain deals in the past – is one of surprise and curiosity," JPMorgan analyst Jamie Baker wrote in a research note on Wednesday.
Another aspect is that JetBlue is currently tied up with American Airlines in its Northeast Alliance (NEA) partnership, designed to help the two airlines better compete in the Northeast with Delta and United, which have become entrenched in key New York and Boston markets.
Now what? 3 reasons JetBlue's bid for Spirit could raise red flags for regulators
Despite a rationale for that partnership that industry observers tend to find credible, the Department of Justice filed an antitrust suit against the two airlines, alleging it was an anti-competitive move, and claiming it would lead to higher prices for consumers.
Some observers are therefore doubtful of JetBlue's claims that it can get regulatory approval for a merger with Spirit — let alone win approval for a merger and keep its alliance with American. American Airlines declined to comment.
Cowen analyst Helane Becker seemed to sum up the prevailing sentiment in a Wednesday research note by saying: "This transaction faces an uphill regulatory review."
Also summing up the uncertainty: JetBlue's stock closed on Wednesday down 8.75%.
Additional reporting from TPG's Ethan Klapper.
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 3X | Earn 3X Miles on Delta purchases. |
| 1X | Earn 1X Miles on all other eligible purchases. |
Pros
- Delta SkyClub access when flying Delta
- Annual companion ticket for travel on Delta (upon renewal)
- Ability to earn MQDs through spending
- Various statement credits for eligible purchases
Cons
- Steep annual fee of $650
- Other Delta cobranded cards offer superior earning categories
- Earn 100,000 Bonus Miles after you spend $6,000 or more in purchases with your new Card within the first 6 months of Card Membership and an additional 25,000 bonus miles after you make an additional $3,000 in purchases on the Card within your first 6 months, starting from the date that your account is opened. Offer Ends 04/01/2026.
- Delta SkyMiles® Reserve American Express Card Members receive 15 Visits per Medallion® Year to the Delta Sky Club® when flying Delta and can unlock an unlimited number of Visits after spending $75,000 in purchases on your Card in a calendar year. Plus, you’ll receive four One-Time Guest Passes each Medallion Year so you can share the experience with family and friends when traveling Delta together.
- Enjoy complimentary access to The Centurion® Lounge in the U.S. and select international locations (as set forth on the Centurion Lounge Website), Sidecar by The Centurion® Lounge in the U.S. (see the Centurion Lounge Website for more information on Sidecar by The Centurion® Lounge availability), and Escape Lounges when flying on a Delta flight booked with the Delta SkyMiles® Reserve American Express Card. § To access Sidecar by The Centurion® Lounge, Card Members must arrive within 90 minutes of their departing flight (including layovers). To access The Centurion® Lounge, Card Members must arrive within 3 hours of their departing flight. Effective July 8, 2026, during a layover, Card Members must arrive within 5 hours of the connecting flight.
- Receive $2,500 Medallion® Qualification Dollars with MQD Headstart each Medallion Qualification Year and earn $1 MQD for each $10 in purchases on your Delta SkyMiles® Reserve American Express Card with MQD Boost to get closer to Status next Medallion Year.
- Enjoy a Companion Certificate on a Delta First, Delta Comfort, or Delta Main round-trip flight to select destinations each year after renewal of your Card. The Companion Certificate requires payment of government-imposed taxes and fees of between $22 and $250 (for itineraries with up to four flight segments). Baggage charges and other restrictions apply. Delta Basic experiences are not eligible for this benefit.
- $240 Resy Credit: When you use your Delta SkyMiles® Reserve American Express Card for eligible purchases with U.S. Resy restaurants, you can earn up to $20 each month in statement credits. Enrollment required.
- $120 Rideshare Credit: Earn up to $10 back in statement credits each month after you use your Delta SkyMiles® Reserve American Express Card to pay for U.S. rideshare purchases with select providers. Enrollment required.
- Delta SkyMiles® Reserve American Express Card Members get 15% off when using miles to book Award Travel on Delta flights through delta.com and the Fly Delta app. Discount not applicable to partner-operated flights or to taxes and fees.
- With your Delta SkyMiles® Reserve American Express Card, receive upgrade priority over others with the same Medallion tier, product and fare experience purchased, and Million Miler milestone when you fly with Delta.
- Earn 3X Miles on Delta purchases and earn 1X Miles on all other eligible purchases.
- No Foreign Transaction Fees. Enjoy international travel without additional fees on purchases made abroad.
- $650 Annual Fee.
- Apply with confidence. Know if you're approved for a Card with no impact to your credit score. If you're approved and you choose to accept this Card, your credit score may be impacted.
- Terms Apply.
- See Rates & Fees