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A federal judge on Tuesday blocked JetBlue Airways’ proposed $3.8 billion acquisition of budget carrier Spirit Airlines, agreeing with the Justice Department that the deal would hurt the availability of low-cost air travel tickets.
U.S. District Judge William Young wrote that the proposed merger “does violence to the core principle of antitrust law: to protect the United States’ markets – and its market participants – from anticompetitive harm.”
Spirit’s stock plunged on the news, falling more than 51% during trading Tuesday afternoon. Dow Jones Market Data group noted that Spirit’s stock neared all-time lows in the wake of the ruling and experienced its largest percentage decrease on record.
A JetBlue airliner lands past a Spirit Airlines jet at Fort Lauderdale Hollywood International Airport on April 25, 2022. (Joe Cavaretta/Sun Sentinel/Tribune News Service via Getty Images / Getty Images)
JetBlue and Spirit can appeal the judge’s ruling if they still wish to pursue the merger.
This is a developing story. Please check back for updates.
Reuters contributed to this report.
