Share this @internewscast.com

JetBlue Airways and Spirit Airlines on Monday said they were terminating their merger agreement weeks after losing a federal antitrust lawsuit that challenged the deal.

A federal judge blocked the attempted merger in January after the Justice Department sued to bar the deal last year alleging the acquisition would stifle competition in the airline industry and eliminate Spirit as a discount alternative for price-conscious travelers.

JetBlue and Spirit appealed the judge’s decision a couple of days later, but JetBlue noted the appeal was required under the terms of the merger agreement.

Spirit shares tumbled 17% in premarket trading, while shares of JetBlue were up roughly 4%.

“It was a bold and courageous plan intended to shake up the industry status quo, and we were right to compete with Frontier and go for an opportunity that would have supercharged our growth and provided more opportunities for crewmembers,” JetBlue CEO Joanna Geraghty said in a note to staff Monday.

“However, with the ruling from the federal court and the Department of Justice’s continued opposition, the probability of getting the green light to move forward with the merger anytime soon is extremely low.”

JetBlue’s prospective purchase of Spirit would have been a buoy for the struggling discounter airline, which is facing the grounding of dozens of its Airbus planes for inspections stemming from a Pratt & Whitney engine defect. Spirit expects compensation from the engine maker as a result of the flaw.

With the deal off the table, Spirit must confront its financial problems alone, something its leaders say it is equipped to do.

The company said it was working to refinance its debt, and last month said it was on a path back to profitability thanks to better-than-expected demand. It projected revenue for the first quarter above analysts’ expectations.

“Throughout the transaction process, given the regulatory uncertainty, we have always considered the possibility of continuing to operate as a standalone business and have been evaluating and implementing several initiatives that will enable us to bolster profitability and elevate the Guest experience,” Spirit CEO Ted Christie said in a release.

He said Spirit shareholders received $425 million in prepayments from JetBlue during the agreement, and that JetBlue will pay Spirit $69 million related to the agreement’s termination.

Share this @internewscast.com
You May Also Like
Trump officials set new rules for COVID vaccines in healthy adults and children

New Guidelines Established by Trump Administration for COVID Vaccination in Healthy Adults and Kids

Tuesday’s announcement is a major shift in the FDA’s approach to updating…
South Sudan news: Trump administration appears to have begun deporting Myanmar, Vietnam migrants, attorneys say

South Sudan Update: Lawyers Report Trump Administration Initiating Deportations of Migrants from Myanmar and Vietnam

WASHINGTON — The Trump administration seems to have started deporting individuals from…
Trump urges GOP to unite on 'Big Beautiful Bill' ahead of key vote

Trump Calls on Republicans to Rally Behind ‘Big Beautiful Bill’ Before Important Vote

With House Democrats lined up against the package, GOP leaders have almost…
Karen Read trial witness faces brutal cross-examination over vehicle data

Witness in Karen Read Trial Endures Intense Cross-Examination Regarding Car Data

Karen Read’s defense revved up its attacks on unexpected new expert findings…
13 suspects in Armenian organized crime ring arrested; Sun Valley, California home among locations raided

13 Arrested in Armenian Crime Ring Bust; Home in Sun Valley, California Searched

LOS ANGELES — A federal sting resulted in the arrest of 13…
Venezuela deportation news: Roughly 50K who arrived in Chicago over last 2 years in limbo after Trump TPS ruling

Impact of Trump’s TPS Ruling: 50,000 Venezuelans in Chicago Face Uncertainty Over Deportation

Approximately 50,000 Venezuelans have made their way to Chicago in the last…
Hawaiian Airlines plane on tarmac after evacuation at San Diego International Airport.

Hawaiian Airlines flight at San Diego Airport evacuated due to bomb threat

A HAWAIIAN Airlines flight has been evacuated at San Diego International Airport…
Shedeur Sanders reveals his Dillon Gabriel feelings after NFL draft

Shedeur Sanders shares his thoughts on Dillon Gabriel following the NFL draft

Shedeur Sanders and Dillon Gabriel may be competition on the field, but…
Here's what to do if your car was damaged in the JAX airport parking garage fire

What Caused the Fire in the JAX Airport Parking Garage?

A car fire in the JAX airport garage Friday damaged 50 vehicles…
Tom Cruise has awkward response to Father's Day question amid Suri estrangement

Tom Cruise Responds Awkwardly to Father’s Day Question in Light of Suri Estrangement

Answering this question was mission: impossible. Tom Cruise had an awkward response…
Man who set beloved Texas grandma on fire executed 13 years after her murder

Texas Man Executed 13 Years After Setting Beloved Grandma on Fire

A Texas man was executed on Tuesday evening 13 years after brutally…

Cat Used in Attempt to Smuggle Drugs into Prison: Authorities Intervene

HILARIOUS footage has emerged showing the moment cops seized a cute cat…