JetBlue Airways Contemplates Dropping Spirit Airlines Acquisition Amid Legal Hurdles

JetBlue Airways, based at New York JFK, is considering withdrawing its bid to acquire Spirit Airlines, headquartered at Fort Lauderdale International, following a federal judge’s ruling that obstructs the proposed USD 3.8 billion merger due to concerns over competition. Despite this legal setback, and the fact that both airlines had agreed just a week prior to contest the decision in an effort to maintain their partnership, the future of the deal now seems uncertain.

In a recent SEC filing on January 26, JetBlue disclosed a communication to Spirit Airlines. The message highlighted that some critical conditions of the merger agreement, dated July 28, 2022, might not be fulfilled within the specified timeframe. Consequently, JetBlue indicated that the agreement could be subject to termination as early as January 28, 2024. While JetBlue is still assessing its options in the wake of this development, the airline’s next steps are not yet clear.

Responding to JetBlue’s announcement, Spirit Airlines expressed confidence in the merger’s viability, stating there was no valid reason for terminating the agreement. Spirit emphasized its commitment to uphold its end of the deal and expects JetBlue to reciprocate.

This potential acquisition had been in the works since July 2022, when JetBlue and Spirit agreed to merge. This agreement came shortly after Spirit had terminated a similar deal with Frontier Airlines, based in Denver International. This termination paved the way for JetBlue, which had previously been locked in a fierce bidding battle with Frontier for the acquisition of Spirit.