Latest News

JetBlue and Spirit appeal judge’s ruling that blocks their proposed merger


In this article


Spirit and JetBlue planes at Fort Lauderdale-Hollywood International Airport in Fort Lauderdale, Florida, on Nov. 1, 2023.
Eva Marie Uzcategui | Bloomberg | Getty Images

JetBlue AirwaysSpirit Airlinesfederal judge’s ruling earlier this week that blocks the two carriers’ planned merger on antitrust grounds.

JetBlue had planned to buy Spirit for $3.8 billion in a deal struck in 2022. A federal judge on Tuesday, however, barred that combination, saying it would eliminate the budget carrier and mean higher prices for cost-conscious consumers.

Spirit shares extended gains posted during the regular session on Friday, rising more than 10% in after-hours trading, while JetBlue’s were down slightly.

JetBlue said it was appealing the decision “consistent with the requirements of the merger agreement.”

Judge William Young noted in his ruling that JetBlue planned to take seats out of Spirit’s tightly packed planes, and said that removing Spirit from the market would leave price-conscious consumers without that option.

“To those dedicated customers of Spirit, this one’s for you,” he wrote.

Miramar, Florida-based Spirit had been struggling before the ruling with softening travel demand, higher costs and planes grounded for a Pratt & Whitney engine issue. But the judge’s decision drew questions from Wall Street analysts about how Spirit would survive, sending shares tumbling.

Spirit said Friday that it is trying to refinance its more than $1 billion of debt due in September 2025 and issued a sunnier-than-expected financial forecast, helping shares recover.

The U.S. Department of Justice will soon weigh in on another proposed merger: Alaska and Hawaiian. Analysts said those carriers’ deal doesn’t have the same challenges because they have less route overlap and plan to operate as separate brands.Don’t miss these stories from CNBC PRO:

Tesla versus BYD: Analysts prefer one of them — giving it up to over 70% upsideGoldman says small caps to beat large caps this year. 10 cheap smaller stocks to buyDoubleLine’s Gundlach sees ‘very painful’ economic downturn, S&P 500 may be forming ‘double top’‘One of the best valuations for AI’: Buy the dip in this Big Tech stock, strategist says

Microsoft executive emails hacked by Russian intelligence group, company says

Previous article

Meta shares close at a record as last year’s mega rally continues

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News