Thursday’s business headlines
INDIANAPOLIS (WISH) — Here’s a look at Thursday’s business headlines with Jane King.
JetBlue buys Spirit Airlines for $3.8B
JetBlue is buying spirit airlines in a $3.8 billion deal, a day after Spirit and Frontier Airlines agreed to abandon their merger proposal.
JetBlue will acquire spirit for $33.50 per share in cash, including a prepayment of $2.50 per share in cash payable once Spirit stockholders approve the transaction. There’s also a ticking fee of 10 cents per month starting in January 2023 through closing.
U.S. gross domestic product report out Thursday
A report on the country’s domestic product, the broadest measure of the U.S economy, will be issued Thursday.
The economy stands at least a fair chance of hitting the rule-of-thumb recession definition of two consecutive quarters with negative GDP readings, although many economists believe we may see slight growth.
Federal Reserve hikes interest rates again
The Federal Reserve on Wednesday raised its benchmark interest rate by three-quarters of a point for the second straight time.
The move makes credit cards and car loans more expensive in hopes that consumers don’t spend as much and that will slow down inflation.
Travelers cutting back on flights could lead to more airfare deals
Consumers are cutting back on their flights and that may be driving airfares lower.
U.S. airline bookings fell 2.8% in June compared with May, according to data collected by Adobe Analytics.
Online spending on tickets fell 5.7% to $7.9 billion over the same period.
This means consumers who are looking for better deals on flights may have more luck in the next few months than they did in the spring.
Amazon may hold another Prime Day
Leaked documents say Amazon may hold another Prime Day event in October.
Insider says the new two-day sales bonanza in October is called the Prime Early Access Sale.
No dates have been set.
Sprite retiring green plastic bottles
Sprite is retiring its green plastic bottles after more than 60 years.
Coca-Cola says it’s changing the packaging from green to clear plastic beginning August 1 as part of broader efforts to become more environmentally responsible.