JetBlue Airways and Spirit Airlines have mutually agreed to terminate their merger after failing to secure legal and regulatory approvals by the July 24 deadline.
A federal judge blocked JetBlue’s acquisition of Spirit Airlines in January, citing concerns about reduced competition and increased fares for consumers. An appeal court meeting was scheduled for June to challenge this decision.
Following the merger cancellation, JetBlue will pay Spirit Airlines USD69 million. Spirit CEO Ted Christie expressed disappointment but remains confident in the airline’s future as an independent carrier.
Spirit Airlines has retained advisors to explore options for refinancing upcoming debt maturities, while JetBlue’s CEO mentioned revenue initiatives and cost-saving programs to restore profitability and aims for breakeven operating margins by 2024.
