Jan. 16 (UPI) — A federal judge on Tuesday blocked JetBlue‘s purchase of rival Spirit Airlines, affecting stock prices for both companies.
The move comes after the U.S. Department of Justice previously had halted JetBlue’s proposed merger with American Airlines in May.
Spirit Airlines shares fell 52% on Tuesday while JetBlue shares gained 3% after a Massachusetts federal judge ruled against JetBlue’s proposed $3.8 billion acquisition of the discount airline Spirit.
The proposed merger would have created the fifth-largest airline in a deal the two companies said would help them grow and compete against its larger rivals, such as United and Delta.
However, the federal government said the deal was anti-competitive and would hurt consumers.
“We 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,” the two airlines said in a joint statement.
JetBlue severed ties with American Airlines in May 2023 after a federal judge ordered the two carriers to end a proposed merger over antitrust laws. JetBlue then decided to focus on the Spirit Airlines merger.
U.S. Attorney General Merrick Garland said in a statement that Tuesday’s ruling is “a victory for tens of millions of travelers who would have faced higher fares and fewer choices had the proposed merger between JetBlue and Spirit been allowed to move forward.”
