"While we are disappointed that we had to terminate our proposed merger with Frontier, we are proud of the dedicated work of our team members on the transaction over the past many months," said Spirit CEO Ted Christie.
With the most recent date looming Wednesday, Spirit announced the deal's end rather than another delay of the vote. Spirit management's argument ultimately failed to get the support of a majority of its shareholders, prompting the company to continually push back the date of the shareholder meeting to approve the Frontier deal. But the Biden administration has taken a much more aggressive stance on questions of antitrust law and vowed to promote greater competition within the airline industry. A deal for Spirit, which would create the nation's fifth largest airline, would be smaller than many airline mergers of recent decades, which turned the 10 largest US airlines into four mega-carriers that control 80% of US air traffic. The proposed merger of Spirit and Frontier, first announced in February, was never able to capture the support of a majority of Spirit shareholders after JetBlue stepped in with its more lucrative all-cash offer.īut Spirit management continued to push for the Frontier deal, arguing that the JetBlue deal was unlikely to win regulatory approval. ) disclose results before the market opens.(CNN) - Spirit and Frontier airlines Wednesday finally pulled the plug on their proposed deal, which had been on life support for months, clearing the way for a possible purchase of Spirit by JetBlue Airways. ) report earnings after the bell Thursday, while The expectation is for 0.8% positive GDP growth compared with the prior quarter, according to FactSet. gross domestic product for the second quarter arrives Thursday morning.
), the workflow software management company, was also down 7.5% after cutting its full-year guidance however, its most recent quarterly profits of $1.62 per share beat estimates.Īn advance release on U.S. Its guidance for the third quarter specifies revenue between $26 billion and $28.5 billion, which missed the Street’s consensus estimate for $30.7 billion. Meta, which behind Ford was trading at the second-highest after-hours volume Wednesday, was down 4.5% after its second-quarter revenue of $28.82 billion fell 1% from a year ago. (F) was another big after-hours gainer, rising 6.4% after reporting earnings of 68 cents a share, far beyond Wall Street expectations for 45 cents per share. ), which rose 7.6% and 6.8%, respectively. Was up more than 11%, as the news also boosted Manchin’s sudden support for a climate and energy spending package caused renewable-energy tickers to shoot up Wednesday evening. ) were more or less unchanged in after-hours trading. JetBlue was down 1.5%, while Spirit was up 2.3%. Eastern time, futures for the S&P 500, Dow Jones Industrial Average, and Nasdaq were down 0.1%, 0.1%, and 0.4%, respectively.Īirlines called off their merger Wednesday afternoon, though Spirit plans to continue speaking with More than 90 companies in the Nasdaq-100 recorded gains.Īt 6:30 p.m. Stocks were already enjoying a strong day when Powell began answering questions from reporters at 2:30 p.m., at which point the indexes soared. The Nasdaq gained 4.1% in its largest single-day percentage gain since April 6, 2020, while the S&P 500 rose 2.6% and the Dow Jones Industrial Average finished up 1.4%. ), moderately hurt the tech and retail sectors.ĭuring the session, traders reacted positively to comments from Federal Reserve Chair Jerome Powell during a Wednesday afternoon press conference, which followed the Fed’s decision to raise its target federal-funds rate by another three quarters of a percent. ), led companies on the rise now that Manchin appears willing to support a federal climate and tax package, while downbeat guidance from Solar tickers, as well as hydrogen fuel-cell developer Joe Manchin on the Congressional climate package filled Wednesday afternoon with headlines, sending broad groups of stocks in different directions during after-hours trading. Merger saga, and an unexpected change of position from Sen.