JetBlue and Spirit Airlines are throwing out their $3.8 billion merger agreement. Both airlines agreed to terminate the deal, citing “legal and regulatory approvals” that “were unlikely to be met” by the merger’s July 2024 deadline.
A federal court blocked the deal in January over concerns that the merger would stifle competition in the airline industry. JetBlue and Spirit filed an appeal shortly after, and a court was set to hear the appeal in June. Now that the deal is off, Attorney General Merrick B. Garland calls the decision a “victory for the Justice Department’s work on behalf of American consumers,” adding that the merger would’ve caused “higher fares and fewer choices.”
In a press release on Spirit’s website, CEO Ted Christie expressed disappointment that the company couldn’t go through with the deal “that would save hundreds of millions for consumers and create a real challenger to the dominant ‘Big 4’ U.S. airlines.”
Meanwhile, JetBlue CEO Joanna Geraghty said in a statement that the company is “proud of the work we did with Spirit to lay out a vision to challenge the status quo, but given the hurdles to closing that remain, we decided together that both airlines’ interests are better served by moving forward independently.”
Update March 4th, 11:06AM ET: Added a statement from the DOJ.
