Jetblue said Friday it may back out of its merger with Spirit Airlines, after a federal judge blocked the $3.8 billion deal last week.
09.01.2024 - 04:37 / skift.com / Robin Hayes / Joanna Geraghty / Meghna Maharishi
Joanna Geraghty, JetBlue’s chief operating officer and president, will become the carrier’s next CEO starting February 12, making her the first woman to lead a major U.S. airline.
Robin Hayes, the current CEO of JetBlue, will step down and serve as a strategic advisor to the company.
“I am honored and excited to serve as the next CEO of JetBlue,” Geraghty said in a statement. “With a beloved brand, an industry-leading customer experience, a unique culture, and the industry’s best crewmembers, JetBlue has long been a disruptor.”
Hayes said he decided to step down to focus more on his health.
“The extraordinary challenges and pressure of this job have taken their toll, and on the advice of my doctor and after talking to my wife, it’s time I put more focus on my health and well-being,” Hayes said in a statement. “I am deeply grateful for these many exciting years and I feel very lucky to have worked at an airline with a brand, culture, and team that are simply unlike any other in the world.”
Geraghty takes the helm of JetBlue as the carrier awaits a decision on its merger with Spirit Airlines and faces declining revenues amid sluggish demand for domestic travel and the unraveling of its partnership with American Airlines, known as the Northeast Alliance.
However, the carrier has seen some bright spots: It noted that demand in December “remained healthy” and operational performance was strong during the holidays. JetBlue is expected to report its fourth-quarter earnings January 30.
Geraghty has been at JetBlue for 20 years, and was appointed COO in and president in 2018. During her time at JetBlue, Geraghty held a number of roles spanning from executive vice president of customer experience to director of litigation and regulatory affairs.
Geraghty joins the few women in the airline industry who hold the position of CEO. Other major airlines like Qantas, Virgin Australia, Air France and KLM have female CEOs, but the men have historically made up the majority of the C-suite in the industry. In the U.S., regional carrier Cape Air is the only other airline in the country to have a female CEO.
JetBlues shares rose by 2% following the news of Geraghty’s appointment to CEO.
Jetblue said Friday it may back out of its merger with Spirit Airlines, after a federal judge blocked the $3.8 billion deal last week.
JetBlue on Friday said for the first time that its agreement to purchase Spirit Airlines for $3.8 billion may collapse, signaling that the New York-based airline may be looking to pull out of the deal.
JetBlue Airways said on Friday that it might back out of a $3.8 billion acquisition of Spirit Airlines after a federal judge blocked the deal.
On January 16, a federal court judge ruled to block JetBlue Airways’ proposed $3.8 billion purchase of Spirit Airlines on antitrust grounds. The decision was made based on a U.S. Justice Department lawsuit filed in March 2023 and aimed at stopping the deal. According to the suit, the merger would “allow JetBlue to eliminate its largest ultra-low-cost rival, further concentrate the airline industry, and harm American travelers.”
JetBlue Airways and Spirit Airlines announced plans to appeal the decision by a United States federal judge to block a potential merger between the two carriers based on violations of antitrust laws.
More than three generations ago, back when the Los Angeles Dodgers were still the Brooklyn Dodgers, they used to have trouble getting past the New York Yankees in the World Series after running roughshod in the National League.
JetBlue and Spirit said Friday they are planning to appeal a judge’s ruling that blocked their proposed merger.
JetBlue said Friday it is cutting several routes from its network as part of its effort to return to profitability.
JetBlue and Spirit said Friday that they will appeal a judge's decision that would block them from completing their blockbuster merger.
JetBlue is cutting several routes – and dropping one city altogether – as it tweaks its route map in an effort to improve profitability.
Spirit Airlines, once a fast-growing low-cost carrier, is struggling to convince investors that it has a clear path forward after an antitrust ruling blocked the sale of the company to JetBlue Airways.
Spirit Airlines was once a golden child of the airline industry. But now that a judge has blocked its proposed merger with JetBlue, Spirit is on its own to deal with declining revenues and rising operating costs.