JetBlue Airways and Spirit Airlines on Monday said they are ending their agreement to merge, weeks after losing a federal antitrust lawsuit that challenged the deal.
A federal judge in January blocked JetBlue's attempted takeover of budget carrier Spirit after the Justice Department sued to bar the deal last year.
The Justice Department alleged the acquisition would stifle competition in the airline industry and eliminate Spirit as a discount alternative for price-conscious travelers.
JetBlue and Spirit appealed the judge's decision a couple of days later, but JetBlue noted the appeal was required under the terms of the merger agreement.
Spirit shares tumbled 17% in premarket trading, while shares of JetBlue were up roughly 4%.
Persons:
JetBlue's, Joanna Geraghty, Department of Justice's
Organizations:
JetBlue Airways, Fort, Hollywood International Airport, Spirit Airlines, Justice Department, JetBlue, Spirit, Analysts, Frontier, Department of
Locations:
Fort Lauderdale, Fort Lauderdale , Florida