From NBCUniversal:

A federal judge has blocked JetBlue’s $3.8 billion purchase of Spirit Airlines, stating that the acquisition would harm cost-conscious travelers by driving up fares. The decision was handed down on Tuesday and marks a victory for the Justice Department in its efforts to prevent anticompetitive deals in the airline industry. Spirit shares plunged 60% after the decision was announced, while JetBlue shares swung between gains and losses.

The decision has left JetBlue grappling with next steps, with incoming CEO Joanna Geraghty tasked with steering the airline on a new path. The acquisition of Spirit was seen as a way for JetBlue to quickly grow and compete against larger airlines, but the court’s decision has put these plans on hold. JetBlue argued that access to Spirit’s fleet of Airbus planes would allow it to expand in congested airspace and gain access to more routes and travelers.

The proposed merger would have transformed JetBlue and Spirit into the country’s fifth-largest airline, but the court’s decision has put the deal on hold. JetBlue planned to remodel Spirit’s yellow planes and charge higher fares to its customers. The acquisition of Spirit would have eliminated about half of all ultra-low-cost airline seats in the industry, according to the Justice Department’s lawsuit filed in March. The court’s decision has left the future of both airlines uncertain, with neither immediately commenting on the ruling.



Read more: JetBlue-Spirit merger block in win for Biden’s Justice Department