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.
19.01.2024 - 10:57 / nytimes.com / Spirit Airlines
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.
A federal judge in Boston blocked the proposed merger on Tuesday, concurring with the Justice Department that the deal would hurt consumers by reducing their choices and raising fares. The airlines, which could appeal, say they are considering their options.
Before it struck a deal with JetBlue in July 2022, Spirit was struggling. Unlike larger airlines, it never fully recovered from the early days of the pandemic in 2020. The budget airline is losing money, and some analysts say it is hard to see how Spirit can dig itself out of its financial hole with the exception of finding another buyer. Some airline experts say the carrier might have to file for bankruptcy protection.
“It’s a challenging financial picture for the company,” said Xavier Smith, director of energy and industrials research at AlphaSense.
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.
Spirit Airlines is expanding its presence in South Carolina, adding flights from Charleston to Boston and New York City this spring.
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.
The Wall Street Journal published its annual list of the best and worst carriers in the US for 2023, and Delta Air Lines once again took the crown for the top airline.
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.”
Alaska Airlines’ CEO said he was “angry” at Boeing after a door panel on a 737 Max 9 blew out mid-air.
JetBlue will discontinue service from Baltimore this spring after more than a decade of flying.
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 is cutting several routes – and dropping one city altogether – as it tweaks its route map in an effort to improve profitability.