Following months of uncertainty, the proposed $3.8 billion merger between JetBlue and Spirit Airlines has been shot down by a federal judge in Massachusetts.

The ruling signals a huge victory for President Joe Biden's U.S. Justice Department, which sued to stop JetBlue's acquisition of ultra-low-cost carrier Spirit in March 2023, arguing it would crush competition and lead to higher airfares for American air travelers.

"JetBlue plans to convert Spirit's planes to the JetBlue layout and charge JetBlue's higher average fares to its customers. The elimination of Spirit would harm cost-conscious travelers who rely on Spirit¡¯s low fares," U.S. District Court Judge William Young wrote in his decision on Tuesday.

"Although Spirit's yellow aircraft livery would not immediately be repainted as JetBlue planes, at the moment the merger is consummated, Spirit and JetBlue would no longer be competitors," he added.

In a joint statement issued in response to the ruling, JetBlue and Spirit leadership said that they "continue to believe that our combination is the best opportunity to increase much needed competition and choice by bringing low fares and great service to more customers in more markets while enhancing our ability to compete with the dominant U.S. carriers."

A JetBlue-Spirit merger would create the nation's fifth-largest airline behind the Big Four of American, Delta, Southwest and United Airlines.

With JetBlue CEO Robin Hayes set to step down from his role effective February 12, it'll be up to current president and chief operating officer Joanna Geraghty¡ªthe first woman to anchor a U.S. carrier¡ªto guide JetBlue through the aftermath of Tuesday's decision.

---

For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.

Topics From This Article to Explore