JetBlue, Spirit Appeal Decision that Blocks Merger

JetBlue and Spirit announced Friday that they will appeal a judge’s ruling that blocked their merger agreement over antitrust concerns.

The airlines jointly appealed the court’s decision, “consistent with the requirements of the merger agreement.” Both airlines have expressed their disagreement with the court’s ruling of the merger deal earlier last week.

The proposed $3.8 billion deal, which would have integrated Spirit into the JetBlue brand, was nixed by a U.S. District Court judge in Boston following a trial last fall in which the airlines argued with federal regulators over the legality of the proposed merger. The judge said the deal would increase fares and harm price-sensitive consumers.

“JetBlue plans to convert Spirit’s planes to the JetBlue layout and charge JetBlue’s higher average fares to its customers,” U.S. District Court Judge William Young wrote. “The elimination of Spirit would harm cost-conscious travelers who rely on Spirit’s low fares.”

The decision represents a major win for the U.S. Justice Department, which sued to halt the agreement in March 2023 over antitrust concerns. Federal regulators have been particularly vigilant about enforcing antitrust laws under President Joe Biden.

“Today’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,” Attorney General Merrick Garland said in a statement. “The Justice Department will continue to vigorously enforce the nation’s antitrust laws to protect American consumers.”

The airlines disagreed, saying the merger will bring greater competition to the larger legacy carriers.

“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 airlines said in a joint statement.