JetBlue Airways shares rose 4.4% on Friday. The rally followed reports that a potential bailout for competitor Spirit Airlines may fail.
Investors anticipate a Spirit shutdown would allow JetBlue to acquire valuable airport routes and gate slots. Trading volume for JetBlue reached nearly 88% above its three-month average during the session.
Market sentiment turned bullish as call option trading surged 87% above the daily average. This activity suggests traders are positioning for further gains in the stock.
The upward move provides a catalyst for JetBlue following its recent wider-than-expected quarterly loss. The airline previously attributed those losses to high fuel costs.