JetBlue and Spirit Airlines terminate $3.8 billion merger agreement

Trending 1 month ago

JetBlue Airways and Spirit Airlines on Monday said they were terminating their merger statement weeks after losing a federal antitrust lawsuit that challenged nan deal.

A national judge blocked nan attempted merger successful January aft the Justice Department sued to barroom nan woody past twelvemonth alleging the acquisition would stifle title successful nan hose manufacture and destruct Spirit arsenic a discount replacement for price-conscious travelers.

JetBlue and Spirit appealed nan judge’s determination a mates of days later, but JetBlue noted nan entreaty was required nether nan position of nan merger agreement.

Spirit shares tumbled 17% successful premarket trading, while shares of JetBlue were up astir 4%.

“It was a bold and courageous scheme intended to shingle up nan manufacture position quo, and we were correct to compete pinch Frontier and spell for an opportunity that would person supercharged our maturation and provided much opportunities for crewmembers,” JetBlue CEO Joanna Geraghty said successful a statement to unit connected Monday.

“However, pinch nan ruling from nan national tribunal and nan Department of Justice’s continued opposition, nan probability of getting nan greenish ray to move guardant pinch nan merger anytime soon is highly low.”

This is simply a processing story. Please cheque backmost for updates.