JetBlue & Spirit Terminate Plans To Merge

March 5, 2024

… with the ruling from the federal court and the Department of Justice’s continued opposition, the probability of getting the green light to move forward with the merger anytime soon is extremely low.

JetBlue CEO Joanna Geraghty in a letter to staff on Monday, as JetBlue and Spirit Airlines decided to terminate their agreement to merge.

Why It Matters: A federal judge blocked JetBlue’s $3.8 billion purchase of Spirit Airlines in January. On Monday, the two airlines announced their decision to step away from the deal, with Geraghty explaining, “We are 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.”

Had the deal gone through, it would have created the fifth-largest airline in the U.S., which JetBlue lawyers argued would have allowed them to compete more seriously with the top four U.S. airlines – American, Delta, United and Southwest (which control around two-thirds of the U.S. airline market).

Read More: JetBlue, Spirit end $3.8 billion merger agreement after losing antitrust suit (CNBC)

by Emily Hooker, based in Texas