From CNBC:

JetBlue Airways and Spirit Airlines are appealing a federal judge’s ruling that blocks their planned $3.8 billion merger, saying it would eliminate the budget carrier and lead to higher prices for consumers. The judge noted that JetBlue planned to remove seats from Spirit’s planes, leaving price-conscious consumers without that option. Spirit shares rose over 10% in after-hours trading, while JetBlue’s fell slightly.

Miramar, Florida-based Spirit had been struggling before the ruling with softening travel demand and high costs. The judge’s decision drew questions from Wall Street analysts about Spirit’s survival, causing shares to plummet. However, Spirit is trying to refinance its more than $1 billion debt and issued a favorable financial forecast, leading to share recovery.

The U.S. Department of Justice will soon weigh in on another proposed merger between Alaska and Hawaiian airlines. Analysts believe this deal has fewer challenges than the JetBlue and Spirit one, as they have less route overlap and plan to operate as separate brands.



Read more: JetBlue, Spirit appeal judge ruling that blocks their proposed merger