Sun Country shares jumped into its debut on Wednesday after hitting an initial public offering above expectations late Tuesday as air travel continues to rise and airline shares rise.
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The cheap carrier costs 24 per share, above the expected range of 21 to 23, and values the company at $ 1.34 billion.
Sun Country Airlines (SNCY) sold 9.09 million shares and raised $ 218.2 million from the IPO. It plans to use part of the proceeds from the offer to repay the CARES Act loan from the federal government.
The company reported a $ 3.9 million loss on revenue of $ 401.5 million last year.
Sun Country shares jumped 42% to 34.00 on the Nasdaq on the stock market today. Discount carrier Southwest Airlines (LUV) rose 1.3% and the ultra-carriage carrier Spirit Airlines (SAVE) increased by 1%.
Among other airline shares, American Airlines (AAL) increased by 0.7%, United Airlines (UAL) achieved 1.3% and Delta Luglyne (DAL) added 0.8%.
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Competitor May Follow Sun Country Stock’s Debut
Airlines have struggled amid the coronavirus pandemic, but air travel has increased in recent weeks as the distribution of vaccines in the US increases.
The Transport Security Administration said it has selected more than 1 million travelers over the past six days as the usually busy spring travel season begins.
Sun Country shares are being announced as airline shares hit the pre-pandemic level higher than almost. On Monday, top firms reported stronger discussions or larger cash flow forecasts.
The rise in travel also coincides with another IPO airline that may soon follow the debut of Sun Country shares.
Last week, the budget company Frontier Airlines filed an IPO after the plans to be known last year were scrapped. It intends to list on Nasdaq under the prescription FRNT.
Frontier is owned by Indigo Partners, a private equity firm that also has interests in three other ultralow cost carriers, JetSMART in Chile, Volaris in Mexico and Wizz Air in Hungary.
Follow Gillian Rich Twitter for aviation news and more.
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For share prices on airlines, the pandemic is almost over, but total traffic is still weakening