2024-01-18 12:30:32 ET
Shares of Spirit Airlines (NYSE: SAVE) have fallen 64.7% this week as of 11:50 a.m. ET Thursday after a federal judge blocked its long-awaited merger with JetBlue Airways (NASDAQ: JBLU) on antitrust grounds.
In a ruling published Tuesday, Boston-based U.S. District Judge William Young struck down the proposed merger. While Young said that the deal would result in “stronger competitive pressure” on larger airlines, he also agreed with a U.S. Department of Justice lawsuit filed in March that asserted the acquisition would result in higher fares for many airline passengers.
“JetBlue plans to convert Spirit’s planes to the JetBlue layout and charge JetBlue’s higher average fares to its customers,” Young wrote. “The elimination of Spirit would harm cost-conscious travelers who rely on Spirit’s low fares.”
For further details see:
Why Spirit Airlines Stock Plummeted 65% This Week
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