JetBlue and Spirit Airlines Call Off $3.8 Billion Merger
JetBlue and Spirit Airlines have jointly decided to abandon their previously agreed-upon $3.8 billion merger. The termination of the merger agreement is attributed to the anticipated challenges in meeting the required “legal and regulatory approvals” before the July 2024 deadline.
The merger between the two carriers faced a setback in January when a federal court intervened, expressing concerns about potential competition constraints in the airline industry and the likelihood of increased passenger fares. Following the court’s decision, both JetBlue and Spirit filed an appeal, scheduled to be heard in June.
Spirit’s CEO, Ted Christie, expressed disappointment in a press release, highlighting the missed opportunity to provide substantial savings for consumers and create a strong competitor among the dominant ‘Big 4’ U.S. airlines.
JetBlue’s CEO, Joanna Geraghty, stated that despite the envisioned collaborative vision challenging the industry’s status quo, the decision to proceed independently was made considering the remaining obstacles to closing the deal.
JetBlue is set to compensate Spirit with a payment of $69 million as part of the termination of the deal initiated in 2022.
