Key insights
- The author speculates on potential mergers and acquisitions within the US airline industry, highlighting the possibility of government involvement and a potential acquisition of American Airlines by United Airlines by 2028. The author suggests buying American Airlines stock based on this speculation. This has a slightly bullish influence due to potential M&A activity.
The likely hood of the US government of turning around spirit Airlines is unlikely. The government has already decided to buy into stocks like Intel.
The stock is trash hover the assets are still manageable and profitable. The possibility of spirit airlines being either bought buy the government is likely or having the government make a deal with airlines good.
The possibility of United airlines or American airlines buying spirit airlines may happen with the government being a partner.
Since United airlines and American didn't merge I think they will possibly have a deal on the table again. All of this is the money being shuffled around. The real winner will be American Airlines. I'm giving my self of January 3, 2028 in order for a deal to happen with United buying American. The other possibility that some other airlines might get gobbled up by other airlines between now and Jan 3, 2028. The airlines are looking to save money and provide more routes.
Frontier airlines could be a good candidate to buy Spirit Airlines or it's assets. Again wait and see. My pick buy American at its current price