JetBlue Airways and Spirit Airlines announced the companies have agreed to terminate their July 2022 merger agreement.

Officials from JetBlue and Spirit mutually agreed that terminating is the best path forward for both companies as required closing conditions, including receiving necessary legal and regulatory approvals, were unlikely to be met by July 24, 2024.

¡°We believed this merger was worth pursuing because it would have unleashed a national low-fare, high-value competitor to the Big Four airlines,¡± said Joanna Geraghty, chief executive officer, JetBlue. ¡°We are proud of the work we did with Spirit to lay out a vision to challenge the status quo, but given the hurdles to closing that remain, we decided together that both airlines¡¯ interests are better served by moving forward independently.¡±

JetBlue will pay Spirit $69 million as part of the agreement, and the termination resolves all outstanding matters related to the transaction, under which any claims between them will be mutually released.

Both airlines have already shifted gears as part of an effort to return to sustained profitability, with JetBlue and Spirit representatives refocusing on core strengths, delivering meaningful cost savings and deepening network relevance.

¡°After discussing our options with our advisors and JetBlue, we concluded that current regulatory obstacles will not permit us to close this transaction in a timely fashion under the merger agreement," said Ted Christie, Spirit's President and Chief Executive Officer.?

¡°We are disappointed we cannot move forward with a deal that would save hundreds of millions for consumers and create a real challenger to the dominant Big 4 U.S. airlines,¡± Christie continued. ¡°However, we remain confident in our future as a successful independent airline. We wish the JetBlue team well.¡±

In January, a federal judge handed down a decision barring JetBlue and Spirit from merging to form a single airline in their current state, citing antitrust concerns. The judge found that eliminating Spirit would harm consumers by removing an ultra-low-cost competitor that had driven other carriers to lower their fares.

---

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

Topics From This Article to Explore