JetBlue, Spirit appellate judge rules to block merger By Reuters
© Reuters. A Spirit Airlines plane departs San Diego International Airport in San Diego, California, USA on January 16, 2024, after a federal judge on Tuesday blocked JetBlue Airways’ planned $3.8 billion acquisition of the ultra-low-cost airline. I’m getting ready to do it. Reuters/Mi
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By David Shepherdson and Nate Raymond
WASHINGTON/BOSTON (Reuters) – JetBlue Airways and Spirit Airlines (NYSE:) said Friday it will appeal a judge’s ruling this week blocking the airlines’ planned partnership.
On Tuesday, U.S. District Judge William Young in Boston ruled in favor of the Justice Department and six states, saying JetBlue’s planned $3.8 billion acquisition of ultra-low-cost carrier Spirit was anticompetitive and would harm consumers.
The airlines filed a notice late Friday that they will appeal his ruling to the U.S. Court of Appeals for the First Circuit.
Spirit shares surged 11% in after-hours trading following the appeal notice. JetBlue shares fell 1.8%.
In a statement, the companies said the filing of the notice of appeal was “consistent with the requirements of the merger agreement.” The Justice Department declined to comment.
Reuters previously reported that Spirit is trying to convince JetBlue Airways (NASDAQ:) to appeal a ruling blocking a partnership between the sixth- and seventh-largest U.S. airlines.
Spirit’s stock price plunged after Young’s ruling, which sided with antitrust regulators who argued the deal would result in higher fares for passengers.
Spirit told JetBlue it would have to exhaust its legal options to complete the deal and appeal the judge’s ruling.
