Earlier this month, JetBlue and Spirit Airlines agreed to terminate their multibillion-dollar merger agreement first posed in summer 2022. Both airlines agreed to call off the merger, acknowledging legal approval and other conditions were unlikely to be met by the agreement by this July.

In January 2024, the U.S. District Court for the District of Massachusetts blocked the transaction because it violated “the core principle of antitrust law: to protect the United States’ markets – and its market participants – from anticompetitive harm.”

“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 CEO, 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. We wish the very best going forward to the entire Spirit team.”

If the merger, estimated to have been worth about $3.8 billion, had gone through, it would have seen the creation of the fifth-largest carrier in the United States. The merger would have also allowed Spirit Airlines to survive a competitive market.

“Today’s decision by JetBlue is yet another victory for the Justice Department’s work on behalf of American consumers,” said Attorney General Merrick B. Garland in a statement. “The Justice Department proved in court that a merger between JetBlue and Spirit would have caused tens of millions of travelers to face higher fares and fewer choices. We will continue to vigorously enforce the nation’s antitrust laws.”

Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division said the win is a “victory for U.S. travelers who deserve lower prices and better choices.”

With the merger now terminated, Spirit Airlines anticipates a tough path. The carrier has endured weak demand in its key markets and, in the immediate aftermath of the terminated merger, saw its shares fall by 14 percent.

In a statement released by Spirit Airlines, the airline is “confident in its strengths and is focused on returning to profitability.”

Under the agreement, JetBlue will pay Spirit Airlines $69 million. The termination also resolves all outstanding matters related to the transaction under which any claims between them will be mutually released. 

What are your thoughts on the terminated merger? Had you supported the merger? Do you think airlines should have more freedom in creating mergers? Tell us your thoughts. Email us at letters@globaltravelerusa.com. Please include your full name and location.