Current:Home > NewsU.S. judge blocks JetBlue's acquisition of Spirit, saying deal would hurt consumers-Angel Dreamer Wealth Society D1 Reviews & Insights
U.S. judge blocks JetBlue's acquisition of Spirit, saying deal would hurt consumers
View Date:2025-01-14 22:17:26
Spirit Airlines stock fell 23% and JetBlue Airways dropped nearly 9% Wednesday and after a federal judge blocked their proposed merger due to concerns that it would monopolize the industry.
JetBlue, the nation's sixth-largest airline, sought to buy Spirit, the seventh-largest, for $3.8 billion.
"A post-merger, combined firm of JetBlue and Spirit would likely place stronger competitive pressure on the larger airlines in the country," Judge William Young wrote in his Tuesday ruling. "At the same time, however, the consumers that rely on Spirit's unique, low-price model would likely be harmed."
Attorney General Merrick Garland called the ruling "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."
Last March, the Justice Department, along with six states and the District of Columbia, filed a civil antitrust lawsuit to stop the acquisition.
In the complaint, the Department of Justice noted how Spirit's low-cost pricing structure, which it called the "Spirit Effect," has made air travel more accessible, and prompted other airlines to lower their prices to stay competitive.
JetBlue also sought to merge its Boston and New York City operations with American Airlines, which a federal judge blocked as well.
In 2022, JetBlue flew more than 39 million passengers and had operating revenues of about $9.1 billion, while Spirit carried over 38 million travelers and recorded about $5 billion in revenue.
veryGood! (18)
Related
- Wicked's Ethan Slater Shares How Ariana Grande and Cynthia Erivo Set the Tone on Set
- Vigils planned across the nation for Sonya Massey, Black woman shot in face by police
- Evy Leibfarth 'confident' for other Paris Olympics events after mistakes in kayak slalom
- Maine launches investigation after 2 escape youth center, steal car
- How Jersey Shore's Sammi Sweetheart Giancola's Fiancé Justin May Supports Her on IVF Journey
- Olympic gymnastics women's recap: Simone Biles puts on a show despite tweaking left calf
- Video shows flaming object streaking across sky in Mexico, could be remnants of rocket
- Chiefs' Travis Kelce in his 'sanctuary' preparing for Super Bowl three-peat quest
- Maine elections chief who drew Trump’s ire narrates House tabulations in livestream
- Thrilling performances in swimming relays earn Team USA medals — including first gold
Ranking
- South Carolina does not set a date for the next execution after requests for a holiday pause
- Spoilers! Let's discuss those epic 'Deadpool & Wolverine' cameos and ending
- 'Dexter' miracle! Michael C. Hall returns from TV dead in 'Resurrection' series
- How photographer Frank Stewart captured the culture of jazz, church and Black life in the US
- Wisconsin’s high court to hear oral arguments on whether an 1849 abortion ban remains valid
- How photographer Frank Stewart captured the culture of jazz, church and Black life in the US
- Will Simone Biles' husband, Chicago Bears safety Jonathan Owens, be in Paris?
- Divers Sarah Bacon and Kassidy Cook win Team USA's first medal in Paris
Recommendation
-
Kate Spade Outlet’s Early Black Friday Sale – Get a $259 Bag for $59 & More Epic Deals Starting at $25
-
Céline Dion's dazzling Olympics performance renders Kelly Clarkson speechless
-
Watching the Eras Tour for free, thousands of Swifties 'Taylor-gate' in Munich, Germany
-
Will Simone Biles' husband, Chicago Bears safety Jonathan Owens, be in Paris?
-
Beyoncé's Grammy nominations in country categories aren't the first to blur genre lines
-
Kamala Harris has America focused on multiracial identity
-
Utility regulators file complaint against natural gas company in fatal 2021 blast in Pennsylvania
-
Céline Dion's dazzling Olympics performance renders Kelly Clarkson speechless