Virgin America shares are skyrocketing as bidders come forward

Virgin America up for sale and stock is rising

Virgin America is up for bid and two companies have come forward to compete for the right to take over the company.

JetBlue and Alaska Air are reportedly in a bidding war for Virgin America, which is worth about $1.7 billion.

The company announced that it would seek a buyer on March 24 and since that time shares have increased by 25%.

Shares jumped by 2% early Tuesday after reports of the bids were revealed. They are selling at parity now.

Virgin America Stocks

Virgin America is focused heavily on the West Coast, which would help bolster JetBlue’s business in the region.

A win for Alaska Air would help increase its profile as an emerging airline throughout the United States.

Virgin America went public in November 2014 but has struggled to turn a profit. Virgin America’s profits in the latest quarter soared about 600% to $191 million from $28 million in the same quarter a year prior.

Consolidation in the airline industry has become something of a standard lately. American Airlines merged with US Airways and United Airlines merged with Continental Airlines.

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Virgin America flies to 22 destinations in the US and Mexico.

All companies involved in the alleged bidding are not responding for comment at this time.

Written by Tammy Johnson

Tammy Johnson

Tammy Johnson is the Retail Editor at BusinessPundit. She focuses on Fortune 500 retail company's and disruptive brick-and-mortar and e-commerce companies that are changing the retail landscape.