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NEW YORK (TheStreet) -- JetBlue Airways Corp.  (JBLU) stock closed higher by 2.72% to $20.79 on heavy trading volume on Monday after reports suggested the Long Island City, NY-based airline carrier offered to acquire its competitor Virgin America (VA), according to Bloomberg.

Virgin America stock soared this afternoon, closing up 10.33% to $37.70.

Burlingame, CA-based Virgin America is considering the offer as well as a bid from Alaska Air Group (ALK), sources told Bloomberg. A deal could be unveiled as soon as next week.

After a rally driven by takeover speculation, Virgin America has a market value of $1.3 billion, Bloomberg added.

"A potential buyer, in our view, could be JetBlue, with similar fleet types, overlapping transcontinental services, similar high-quality product offerings and complimentary networks," Sterne Agee analysts wrote in a note last week, Bloomberg reported.

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By the end of the trading day, 7.7 million shares of JetBlue had exchanged hands, compared with its average daily volume of 7.27 million shares.

Separately, JetBlue has a "buy" rating and a letter grade of A- at TheStreet Ratings because of the company's revenue growth, impressive record of earnings per share growth, expanding profit margins, good cash flow from operations and solid stock price performance.

You can view the full analysis from the report here: JBLU

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

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