Judge stops JetBlue merger with Spirit

U.S. District Court Judge William Young blocked the proposed $3.8 billion merger of JetBlue Airways and Spirit Airlines on Tuesday. The U.S. Department of Justice filed an antitrust lawsuit to stop the deal in March, alleging the merger would make airlines raise their rates without the competition from a low-price airline like Spirit. Young echoes the Biden administration’s sentiments in his decision on the case, explaining that “the elimination of Spirit would harm cost-conscious travelers who rely on Spirit’s low fares.” The deal would have made JetBlue the fifth-largest airline in the United States, according to CNBC.

How are JetBlue and Spirit responding? The airlines released a joint statement saying they disagree with Young’s ruling and are deciding their next move. “We continue to believe that our combination is the best opportunity to increase much-needed competition,” according to the statement. The carriers may appeal the decision before their merger agreement expires in July.

Dig deeper: Read Michael Cochrane’s report in WORLD Magazine on an electric aircraft startup that could revolutionize regional passenger travel.