JetBlue cancels bid to buy Spirit

JetBlue Airways announced it is canceling its bid to acquire Spirit Airlines after a judge blocked the merger earlier this year.

Driving the news: The decision was made due to legal and regulatory hurdles, particularly amidst the Biden administration’s strong stance against consolidation.

• Both airlines believed the merger would benefit passengers by creating a competitive low-fare airline against the Big Four carriers in the industry, but they felt that they would not be able to meet the requirements to close by the July 24 deadline.

• The cancellation of the merger was seen as a victory for the Justice Department’s efforts to advocate for consumer rights and competition.

• JetBlue will pay Spirit $69 million to terminate the deal.

• U.S. District Judge William Young’s ruling in January halted the $3.8 billion purchase, stating concerns about the potential negative impact on Spirit’s customers who relied on its affordable prices.