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Major U.S. airline stocks experienced a significant surge on Friday following reports that Spirit Airlines is preparing to shut down.
Shares of JetBlue led the rally with an 8.4% jump, while American, Delta, United, and Southwest all saw gains exceeding 3%.
The market’s reaction followed a Wall Street Journal report indicating that the discount carrier is moving toward ceasing operations as prospects for a federal rescue fade.
While President Donald Trump had previously expressed interest in a relief package to save thousands of jobs, internal opposition and friction with bondholders reportedly stalled a potential $500 million lifeline.
Spirit had initially aimed to emerge from bankruptcy by early summer following a February 24 debt restructuring agreement.
However, those plans were derailed by a sharp spike in fuel costs triggered by the U.S.-Israeli conflict with Iran that began in late February.
Although the specific timeline for Spirit to end its services remains uncertain, the news suggests that the carrier’s long-standing financial struggles have reached a breaking point.
Investors in rival airlines appear to be betting that Spirit’s departure will reduce market saturation and allow remaining carriers to capture its former passenger base.
