JetBlue and Spirit Airlines have announced the termination of their merger agreement, initially slated for July 2022. The companies expressed that they would likely fail to meet the deal’s closing requirements, which include legal and regulatory approvals, by the agreement's deadline of July 24, 2024.
Joanna Geraghty, CEO of JetBlue, stated in a joint press release: "We believed this merger was worth pursuing because it would have unleashed a national low-fare, high-value competitor to the Big Four airlines." She added: "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."
The U.S. Department of Justice revealed in a press release that in March 2023, a lawsuit was filed against the $3.8 billion deal under Section 7 of the Clayton Act. This action was taken by the Justice Department along with California, Maryland, Massachusetts, New Jersey, New York, North Carolina and the District of Columbia. A U.S. district court blocked the deal after a 17-day trial that commenced in October 2023.
As per the terms stipulated in their agreement as detailed in an airline press release, JetBlue will pay Spirit $69 million to terminate the transaction.
Attorney General Merrick B. Garland lauded this development as another victory for consumer protection efforts led by the Justice Department. He said: "The Justice Department proved in court that a merger between JetBlue and Spirit would have caused tens of millions of travelers to face higher fares and fewer choices."
