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☆ Why the JetBlue-Spirit antitrust ruling doesn't spell doom for an Alaska-Hawaiian merger
▼ + stars: | 2024-01-19 | by ( Leslie Josephs | ) www.cnbc.com time to read: +2 min

Alaska and Hawaiian Airlines planes takeoff at the same time from San Francisco International Airport (SFO) in San Francisco, California, United States on June 21, 2023. President Joe Biden's Justice Department has successfully had two airline link-ups halted in court in recent months. That doesn't necessarily spell doom for Alaska Air's plan to buy Hawaiian Airlines . The decision immediately sparked questions of whether an Alaska-Hawaiian combination would suffer a similar fate in an antitrust lawsuit. The Justice Department didn't immediately respond to a request for comment about whether it plans to challenge Alaska and Hawaiian's proposed deal.

Persons: Joe Biden's, William Young, Michael Linenberg, Department didn't, Hawaiian's, Herbert Hovenkamp Organizations: Hawaiian Airlines, San Francisco International Airport, Department, Hawaiian Airlines . U.S, Justice Department, JetBlue Airways, Spirit Airlines, Deutsche Bank, JetBlue, University of Pennsylvania's Carey Law School, Spirit Locations: Alaska, San Francisco , California, United States, Hawaiian Airlines ., Hawaii

☆ Here are Thursday's biggest analyst calls: Apple, Netflix, Nvidia, Meta, Rivian, Costco, Hertz, Microsoft & more
▼ + stars: | 2024-01-18 | by ( Michael Bloom | ) www.cnbc.com time to read: +9 min

Bank of America upgrades Apple to buy from neutral Bank of America said AI and Vision Pro should drive upside for Apple. Bank of America reiterates Microsoft as buy Bank of America raised its price target on Microsoft to $450 per share from $430. Guggenheim reiterates Target as buy Guggenheim said Target is well positioned in 2024. Bank of America names Harley Davidson a top pick Bank of America said the motorcycle company is well positioned for 2024. " Bank of America reiterates ServiceNow as a top pick Bank of America said the stock remains a top idea for 2024.

Persons: KBW downgrades Charles Schwab, KBW, Mizuho, Robinhood, ., DA Davidson, Baird, Rivian, Wolfe, it's, Wells, it's bullish, Bernstein, Guggenheim, Piper Sandler, Tempur Sealy, TPX, CFRA, Harley Davidson, Oppenheimer, Morgan Stanley, Hertz, ServiceNow, Argus, Salesforce, Mike Blake Organizations: UBS, Netflix, Bank of America, Apple, of America, Nvidia, Semiconductors, Barclays, Red Rock Resorts, Vegas Locals, Microsoft, Guggenheim, Citi, JetBlue, Spirit, Costco, Piper, Palo Alto Networks, Paramount, Nasdaq, Hertz, Blackrock, Amazon, Deutsche Bank, Deutsche, JPMorgan Locations: repurchases, Palo, Palo Alto, Southeast China, 1H24, Los Angeles

TOKYO (AP) — Asian shares traded mixed Thursday as pessimism spread among investors about any imminent interest rate cut in the United States. Wall Street slipped following another signal that it may have gotten too optimistic about when the Federal Reserve will deliver the cuts to interest rates. Yields climbed after a report showed sales at U.S. retailers were stronger in December than economists expected. Higher yields can crimp profits for companies, while also making investors less willing to pay high prices for stocks. Higher yields hurt all kinds of investments, and high-growth stocks tend to be some of the hardest hit.

Persons: Australia's, Korea's Kospi, Seng, Brent, Stan Choe, Yuri Kageyama Organizations: TOKYO, Nikkei, Shanghai, Federal Reserve, Dow Jones, Nasdaq, U.S, Treasury, Amazon, Fed, Traders, CME Group, European Central Bank, U.S . Bancorp, Sporting Goods, Spirit Airlines, JetBlue Airways, JetBlue, U.S ., AP Locations: United States, Hong, U.S, New York

☆ She started as a flight attendant at age 20. Now, she's just been named Japan Airlines' first female president.
▼ + stars: | 2024-01-18 | by ( Marielle Descalsota | ) www.businessinsider.com time to read: +2 min

Japan Airlines named a woman as president for the first time in its history. AdvertisementThe new president of Japan Airlines is the first woman to helm the top job at the company, the airline announced in a statement on Wednesday. Related storiesTottori will replace Yuji Akasaka, the airline's president since June 2018, per Akasaka's company profile. Two weeks before Tottori's promotion, a Japan Airlines A350 plane collided with a Japan Coast Guard aircraft at Haneda Airport in Tokyo. Japan Airlines did not immediately respond to a request for comment from Business Insider.

Persons: Mitsuko Tottori, —, Yuji Akasaka, Joanna Geraghty Organizations: Japan Airlines, JAL, JetBlue, Service, US, Reuters, Japan Coast Guard, Mainichi, Business Locations: Tottori, Japan, Tokyo

☆ Analyst: Spirit Airlines could be forced out of business after JetBlue deal is blocked
▼ + stars: | 2024-01-18 | by ( Chris Isidore | ) edition.cnn.com time to read: +7 min

New York CNN —Spirit Airlines could end up in bankruptcy and be forced out of business because of a federal court decision to block a proposed sale to JetBlue Airways, according to a note from an airline analyst. “We believe Spirit will first look for an alternative buyer, but another airline may get the same pushback [from antitrust regulators. Its fares prompted major airlines to offer a certain number of no-frills “basic economy” seats on their planes. It also prompted concerns that its purchase by JetBlue would lead to higher fares across the industry — concerns which resulted in the Justice Department’s antitrust case that blocked the deal. “While we are disappointed with this [court decision] outcome, we are confident in our strengths and strategy,” said a company statement sent to CNN.

Persons: Helane Becker, Cowen, “, ”, Becker, General Merrick Garland, Pete Buttigieg, ” Buttigieg, Fitch, it’s, William Young Organizations: New, New York CNN — Spirit, JetBlue Airways, JetBlue, Transportation, Refinitiv, JPMorgan Chase, CNN, Airbus, Boeing, lessors, Federal, Spirit Locations: New York, Spirit’s, U.S

☆ Stocks making the biggest moves midday: Apple, Humana, Taiwan Semiconductor, Birkenstock and more
▼ + stars: | 2024-01-18 | by ( Michelle Fox | ) www.cnbc.com time to read: +4 min

Taiwan Semiconductor Manufacturing — U.S.-listed shares of the semiconductor company popped 9.79% on the back of a fourth-quarter profit and revenue beat . Fastenal earned 46 cents per share on revenue of $1.76 billion, while analysts polled by StreetAccount forecast 45 cents per share on $1.75 billion in revenue. Adjusted earnings per share were 32 cents, versus the 27 cents expected from analysts polled by StreetAccount. KeyCorp — The Cleveland-based bank dropped 4.62% after reporting fourth-quarter adjusted earnings per share of 3 cents, down from 38 cents a year prior. Kinder Morgan — Kinder Morgan shares slid 1.42% after the natural gas pipeline operator reported fourth-quarter revenue of $4.04 billion, missing the LSEG consensus estimate of $4.41 billion.

Persons: Sekisui, Hertz, Morgan Stanley, Fastenal, Birkenstock, KeyCorp —, Kinder Morgan — Kinder Morgan, CNBC's Lisa Han, Samantha Subin, Alex Harring, Yun Li, Pia Singh, Sarah Min Organizations: Apple —, Nasdaq, Bank of America, Apple, CVS Health, MDC Holdings, MDC, Taiwan Semiconductor Manufacturing, Taiwan Semiconductor, Nvidia, Qualcomm, Devices, Spirit Airlines, JetBlue, Citi, StreetAccount, Horizon, Discover Financial, Wolfe Research, JPMorgan Locations: KeyCorp — The Cleveland, Singapore

Thursday's analyst calls featured an upgrade to a car rental stock and a big downgrade to an airline. The bank also hiked his price target on the tech giant to $225 per share, implying upside of 23%. — Pia Singh 5:36 a.m.: Citi downgrades Spirit Airlines to sell Citi is throwing in the towel on Spirit Airlines . Week to date, Spirit shares are down nearly 60%. Spirit shares were down more than 4% in the premarket.

Persons: Morgan Stanley, Hertz, Andrew Percoco, Percoco, — Pia Singh, Wamsi Mohan, Fred Imbert, Kirk Materne, Materne, Dan Dolev, Dolev, he's, CFRA, Kenneth Leon, Berkshire Hathaway, Leon, Ranjan Sharma, Sharma, bode, Adam Jonas, Jonas, Morgan, Stephen Trent, Trent Organizations: CNBC, flipside, Citi, Spirit Airlines, JetBlue, Bank of America, Apple Bank of America, Apple, Microsoft, ISI, Activision, Activision Blizzard, Mizuho, Fidelity National Information Services, Paramount Global, RedBird Capital, Warner Bros ., Comcast, Paramount's, Showtime, Paramount, JPMorgan, Grab Holdings, Hertz Global Holdings, Jan, Citi downgrades Spirit Airlines, Spirit, Airlines Locations: Berkshire, 1H24, Wednesday's

☆ Stocks making the biggest moves premarket: Discover Financial Services, Spirit Airlines, Humana, Hertz and more
▼ + stars: | 2024-01-18 | by ( Lisa Kailai Han | ) www.cnbc.com time to read: +4 min

Discover Financial Services — The financial services stock dropped more than 7% after posting mixed fourth-quarter results. Hertz — The automotive rental company's stock climbed about 6% following an upgrade to overweight from Morgan Stanley earlier on Thursday. Kinder Morgan — Shares of the energy infrastructure company fell less than 1% after Kinder Morgan's fourth-quarter revenue came in lower than expected. Fastenal — The industrial supplies company added 4% after posting fourth-quarter earnings that exceeded analyst expectations. Humana — The health insurance company lost more than 14% on Thursday after guiding for full-year 2023 adjusted earnings of $26.09 per share.

Persons: Hertz, Morgan Stanley, Adam Jonas, Hertz's, BofA, Ranjan Sharma, Kinder Morgan —, Kinder Morgan's, Kinder, Fastenal, Chris Caso, — CNBC's Brian Evans, Michelle Fox, Fred Imbert, Jesse Pound, Pia Singh, Samantha Subin Organizations: Discover Financial, Apple, Bank of America, Spirit Airlines, JetBlue, Citi, Spirit, Alaska Air Group —, Boeing, Alaska Airlines, Federal Aviation Administration, JPMorgan, Wolfe Research, Humana, Alcoa, Revenue Locations: Singapore

☆ Premarket stocks: Airline stocks are getting pummeled. Here are four reasons why
▼ + stars: | 2024-01-18 | by ( Krystal Hur | ) edition.cnn.com time to read: +6 min

New York CNN —It’s been a tough month for shares of airline companies. Here’s why investors are getting out of airline stocks. Boeing’s “can of worms”: Boeing’s problems began on Jan. 5, when the door plug on an Alaska Airlines Boeing 737 Max 9 detached mid-flight. Oil prices are volatile: Investors are also concerned about a possible spike in oil prices. United Airlines Holdings shares have declined 8% so far in January and American Airlines Group shares have fallen 6%.

Persons: New York CNN — It’s, Wells, “, Max, JetBlue’s, Patrick T, Fallon, Brent, Ed Bastian, Antony Blinken, CNN’s Jennifer Hansler, Bryan Mena, Read Organizations: CNN Business, Bell, New York CNN, NYSE, Alaska Airlines Boeing, Max, Boeing, Alaska Airlines, US Federal Aviation Administration, National Transportation Safety, FAA, ”, Spirit Airlines, JetBlue, Spirit, CNN . Spirit Airlines Airbus, JetBlue Airlines Airbus, Los Angeles International Airport, Getty, US Justice Department, Hawaiian Airlines, Hawaiian Holdings, US, . West Texas, Delta Air Lines, Delta, United Airlines Holdings, American Airlines Group, Blinken’s Boeing, Commerce Department Locations: New York, Washington, Boston, AFP, Iran, Yemen, Davos, Zurich, deplane

☆ Stock Market Today: Indexes Finish Lower as Investors Digest Bank Earnings
▼ + stars: | 2024-01-17 | by ( ) www.wsj.com time to read: +1 min

Stocks finished lower Tuesday after a Federal Reserve official said the central bank could cut interest rates this year but that the process should be "carefully calibrated and not rushed." Benchmark Treasury yields rose to settle at 4.064%, its highest afternoon level of the year so far. In bank stocks: Morgan Stanley fell after reporting quarterly results, while PNC wavered. Shares of leading U.S.-listed Chinese companies fell, with the Invesco Golden Dragon China exchange-traded fund down nearly 4%. Chinese Premier Li Qiang on Tuesday sought to reassure investors about opportunities in his country.

Persons: Stocks, Dow industrials, Morgan Stanley, Goldman Sachs, Tesla, Elon Musk, Yemen's Houthi, Li Qiang Organizations: Federal Reserve, PNC, Boeing, Spirit Airlines, JetBlue, Oil, Shell, Benchmark Locations: China

☆ What is the 'Ballerina Farm controversy?' Some viewers feel an influencer's rustic homesteading videos don't add up with her family's stratospheric wealth
▼ + stars: | 2024-01-17 | by ( Geoff Weiss | ) www.businessinsider.com time to read: +4 min

As her TikTok channel Ballerina Farm grew in popularity, controversy has also stirred. When Ballerina Farm pretends their reality is reality, those people are erased." Who is Ballerina Farm? The creator @caroclaireburkeeen has critiqued Ballerina Farm in several videos starting at the beginning of this year. Ballerina Farm did not respond to Business Insider's request for comment.

Persons: Hannah Neeleman, —, Hannah Neeleman —, sourdough, David Neeleman, Neeleman, Dean Martin, Farm's homemaking, Anne Helen Peterson, Meg Conley, Daniel, it's, She's, @caroclaireburkeeen, @thecopperpony, Ballerina Organizations: Juilliard grad, Service, Azul, JetBlue, Breeze Airways, Reuters, Juilliard, Vox Locations: Kamas , Utah

☆ Committee Stocks on the Move: JetBlue, Spirit Airlines, Alibaba, Morgan Stanley and Kohl's
▼ + stars: | 2024-01-17 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCommittee Stocks on the Move: JetBlue, Spirit Airlines, Alibaba, Morgan Stanley and Kohl'sJenny Harrington, Gilman Hill Asset Management CEO, Jim Lebenthal, chief equity strategist at Cerity Partners, Joe Terranova, senior managing director at Virtus Investment Partners, and Rob Sechan, managing partner at NewEdge Wealth, join CNBC's Halftime Report' to discuss multiple stocks on the move today and how you should trade them.

Persons: Morgan Stanley, Kohl's Jenny Harrington, Jim Lebenthal, Joe Terranova, Rob Sechan Organizations: JetBlue, Spirit Airlines, Management, Cerity Partners, Virtus Investment Partners, NewEdge Wealth

☆ Stocks making the biggest moves midday: Instacart, Spirit Airlines, Marathon Digital and more
▼ + stars: | 2024-01-17 | by ( Lisa Kailai Han | ) www.cnbc.com time to read: +4 min

Following the ruling, Bank of America downgraded Spirit to an underperform rating, while Susquehanna downgraded the airline to negative. Rivian — The electric vehicle manufacturer slid nearly 8% following a downgrade to a hold rating from Deutsche Bank. Polaris , Mattel — The stocks moved following rating changes from Morgan Stanley. Meanwhile, toymaker Mattel slid 2.8% after Morgan Stanley downgraded shares to equal weight, citing lofty consensus estimates and a tough 2024 outlook. Marathon Digital — The crypto mining firm slid 3% during Wednesday's trading session.

Persons: JetBlue's, Sinclair —, Sinclair, SolarEdge — SolarEdge, Teladoc, Davidson, Nutanix, William Blair, Uber, Ford, Morgan Stanley —, Ted Pick, Morgan Stanley, TD Cowen, Gregory Lewis, —, Alex Harring, Yun Li, Pia Singh, Samantha Subin Organizations: Spirit Airlines, JetBlue Airways —, Bank of America, Susquehanna, Interactive, LSEG, Diamond Sports Group, Diamond, Barclays, Broadcom, VMware, Wolfe Research, Deutsche Bank, UBS, JPMorgan, Polaris, Mattel, Automotive, Boeing, Federal Aviation Administration, BTIG, Marathon Digital Locations: Europe, China

☆ Failed JetBlue takeover could force Spirit to slash fares, restructure as carrier grasps for a path
▼ + stars: | 2024-01-17 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

Spirit Airlines is on shaky footing after JetBlue Airways ' proposed $3.8 billion takeover of the budget carrier was blocked by a federal judge this week. Industry-watchers say the carrier could be forced to cut its already low fares even more. Some Wall Street analysts argue the discount carrier could have to restructure, if not liquidate. A potential bankruptcy could force the airline, known for its low fares and fees for everything else like seat selection and cabin baggage, to slash fares even more. "We may see some shocking prices on major Spirit routes as the carrier tries to bring as much cash in the door as possible," Becker wrote.

Persons: Helane Becker, Cowen, Becker Organizations: JetBlue Airways, Industry, Pratt & Whitney

☆ Spirit Airlines shares sink 20% in second day of losses after judge blocks JetBlue merger
▼ + stars: | 2024-01-17 | by ( Ryan Anastasio | ) www.cnbc.com time to read: +1 min

JetBlue Airways planes are seen near Spirit Airlines planes at the Fort Lauderdale-Hollywood International Airport in Fort Lauderdale, Florida, on May 16, 2022. Shares of Spirit Airlines fell about 23% Wednesday, its second day of double-digit losses, after a judge blocked its proposed merger with JetBlue Airways . "JetBlue plans to convert Spirit's planes to the JetBlue layout and charge JetBlue's higher average fares to its customers," U.S. District Court Judge William Young wrote in his decision. "The elimination of Spirit would harm cost-conscious travelers who rely on Spirit's low fares." Shares of JetBlue fell about 8% Wednesday and are down about 3% since the judge blocked the merger.

Persons: William Young Organizations: JetBlue Airways, Airlines, Fort, Hollywood International, Spirit Airlines, JetBlue, Wall Street, CNBC PRO Locations: Fort Lauderdale, Fort Lauderdale , Florida, U.S

A sale to JetBlue represented a lifeline for Spirit, which faces $1.1 billion in debt maturing next year. But a federal judge in Boston scuttled that plan by ruling Tuesday that JetBlue’s $3.8 billion proposal to buy Spirit violates antitrust law. But Frontier has its own challenges and is in no position to renew merger discussions with Spirit now, Baker said. Like Spirit, JetBlue has not had a profitable year since 2019, before the pandemic. Investors are also trying to gauge what the ruling against the JetBlue-Spirit deal means for Alaska Airlines' pending proposal to buy Hawaiian Airlines.

Persons: Airlines hasn’t, haven’t, William Young's, ”, Helane Becker, Cowen, “, Jamie Baker wasn’t, ” Baker, Baker, Judge Young, Young, Robin Hayes –, Biden, hasn't, Michael Linenberg Organizations: Airlines, JetBlue, Justice Department, Bank of America, Pratt & Whitney, Airbus, Frontier Airlines, –, Investors, Alaska Airlines, Hawaiian Airlines, Deutsche Bank, Spirit, American Airlines Locations: Boston, Miramar , Florida, Alaska

☆ Airline consolidation has been a challenge, says DOJ's Doha Mekki
▼ + stars: | 2024-01-17 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailAirline consolidation has been a challenge, says DOJ's Doha MekkiCNBC's Phil LeBeau with Doha Mekki, U.S. DOJ antitrust deputy assistant Attorney General, join 'Power Lunch' to discuss the JetBlue-Spirit merger block and what it means for other mergers.

Persons: Phil LeBeau Organizations: Doha Mekki, JetBlue Locations: U.S

☆ Stocks making the biggest moves before the bell: Spirit, Tesla, Teladoc, Rivian and more
▼ + stars: | 2024-01-17 | by ( Alex Harring | ) www.cnbc.com time to read: +4 min

Spirit Airlines , JetBlue Airways — The airline stocks slid after a federal judge blocked JetBlue Airways' proposed $3.8 billion acquisition of Spirit Airlines. JetBlue shares fell nearly 1%, while Spirit Airlines dropped more than 20%. SolarEdge Technologies — The solar stock fell 5% following a downgrade by Barclays to underweight from equal weight. Twist Bioscience — Shares climbed 3.2% on the heels of an upgrade to buy from neutral at Goldman Sachs. Ford — Shares shed 2.3% on the back of a UBS downgrade to neutral from buy.

Persons: Sinclair —, Sinclair, Goldman Sachs, Davidson, William Blair, Nutanix, Wolfe, Uber, Tesla, Morgan Stanley —, Ted Pick, Visteon, Morgan Stanley, Morgan, —, Sarah Min, Yun Li, Jesse Pound, Michelle Fox Organizations: Spirit Airlines, JetBlue Airways —, JetBlue Airways, Bank of America Securities, Susquehanna Financial, JetBlue, LSEG, Diamond Sports Group, Diamond, Technologies, Barclays, Goldman, —, Broadcom, VMware, Deutsche Bank, Ford —, UBS, JPMorgan, Polaris, Mattel Locations: Rivian, China

☆ Here are Wednesday's biggest analyst calls: Apple, Tesla, Rivian, Amazon, Netflix, Ford, Rocket Lab & more
▼ + stars: | 2024-01-17 | by ( Michael Bloom | ) www.cnbc.com time to read: +8 min

Here are Wednesday's biggest calls on Wall Street: Citi reiterates Apple as buy Citi said it's standing by its top pick status on Apple shares. UBS downgrades Ford to neutral from buy UBS said it sees limited upside to estimates. TD Cowen downgrades Fisker to market perform from outperform TD said it sees too many growing pains for Fisker. KeyBanc initiates Rocket Lab as overweight Key said it sees upside for the rocket satellite company. "We initiate coverage on Rocket Lab USA (NASDAQ: RKLB) with an Overweight rating and $8 price target, reflecting ~50% upside."

Persons: Jefferies, Tesla, Elon, Ford, TD Cowen downgrades Fisker, JPMorgan downgrades Morgan Stanley, Morgan Stanley, it's, Christine Barone, Goldman Sachs, Goldman, Davidson downgrades Teladoc, Key, Evercore, Wolfe, Piper Sandler, TGT, BURL, SolarEdge, Mizuho, William Blair, it's bullish Organizations: Citi, Apple, Huawei, UBS, JPMorgan, Bank of America, Bros, Rocket Lab, Lithia, Dealers, Susquehanna, JetBlue Spirit, Deutsche Bank, Deutsche, EV, CART, Target, Barclays, Boeing, Airbus, Mizuho, Amazon, " Bank of America, Netflix Locations: China, 2Q24, 3Q24, Burlington

☆ Federal Judge Blocks JetBlue’s $3.8 Billion Acquisition of Spirit Airlines
▼ + stars: | 2024-01-16 | by ( Dave Michaels | Alison Sider | ) www.wsj.com time to read: 1 min

JetBlue is the country’s sixth-largest carrier, and Spirit ranks seventh. Photo: Wilfredo Lee/Associated PressA federal judge on Tuesday blocked JetBlue Airways from acquiring Spirit Airlines , agreeing with the Justice Department that the $3.8 billion deal would eliminate a competitor important to price-conscious travelers. The Justice Department said JetBlue’s purchase of Spirit would remove an ultra-low-cost carrier that benefits travelers and puts pressure on other airlines to keep down fares. Removing Spirit as a rival would free JetBlue to raise prices by as much as 30%, the government said. JetBlue is the country’s sixth-largest carrier, and Spirit ranks seventh.

Persons: Wilfredo Lee Organizations: JetBlue, Associated Press, JetBlue Airways, Spirit Airlines, Justice Department

DALLAS (AP) — A federal judge is siding with the Biden administration and blocking JetBlue Airways from buying Spirit Airlines, saying the $3.8 billion deal would reduce competition. The Justice Department sued to block the merger, saying it would drive up fares by eliminating Spirit, the nation’s biggest low-cost airline. Shares of Spirit Airlines Inc. plunged more than half almost immediately, while JetBlue shares gained 8%. Another judge in the same Boston courthouse killed a partnership in the Northeast between JetBlue and American Airlines. Tuesday's ruling could open the door for Frontier Airlines to make another attempt to buy Spirit.

Persons: Biden, William Young, ” Young, Joanna Geraghty, Robin Hayes, Tuesday's Organizations: DALLAS, —, JetBlue Airways, Spirit Airlines, The Justice, JetBlue, New, Justice Department, Spirit Airlines Inc, American Airlines, Frontier Airlines Locations: New York, U.S, Boston, Florida

☆ Judge blocks JetBlue's $3.8 billion acquisition of Spirit, saying the deal would reduce airline competition
▼ + stars: | 2024-01-16 | by ( Associated Press | ) www.businessinsider.com time to read: +1 min

Read previewA federal judge is siding with the Biden administration and blocking JetBlue Airways from buying Spirit Airlines, saying the $3.8 billion deal would reduce competition. This story is available exclusively to Business Insider subscribers. The Justice Department sued to block the merger, saying it would drive up fares by eliminating Spirit, the nation's biggest low-cost airline. JetBlue argued that the deal would help consumers by making JetBlue a stronger competitor against bigger rivals that dominate the U.S. air-travel market. AdvertisementShares of Spirit Airlines Inc. plunged more than 53% almost immediately.

Persons: —, Biden, William Young Organizations: Service, JetBlue Airways, Spirit Airlines, Business, The Justice, JetBlue, Spirit Airlines Inc Locations: U.S

NEW YORK (AP) — The prospect of a JetBlue-Spirit Airlines merger took a major hit in court on Tuesday when a federal judge sided with the Biden administration and blocked the $3.8 billion deal. The judge ruled that JetBlue's purchase of Spirit, the nation's largest low-cost airline, would harm competition — and increase prices for air travelers as a result. The Justice Department and several state attorneys general sued to block the merger last year — arguing that it would drive up fares by eliminating low-cost Spirit. With no merger in sight, the status quo for both JetBlue and Spirit remains — meaning air travelers shouldn't expect major changes anytime soon. In the past, the Justice Department has faced criticism for greenlighting a wave of mergers.

Persons: Biden, William Young, Ronald Reagan, General Merrick Garland Organizations: JetBlue, Spirit Airlines, JETBLUE, Justice Department, Young, Justice, Spirit, Frontier Airlines, Alaska Airlines, Hawaiian Airlines, Southwest Locations: Boston, Florida, Delta, United

☆ Judge blocks JetBlue-Spirit merger after DOJ's antitrust challenge
▼ + stars: | 2024-01-16 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

LaGuardia International Airport Terminal A for JetBlue and Spirit Airlines in New York. A federal judge blocked JetBlue Airways ' purchase of budget rival Spirit Airlines after the Justice Department sued to stop the merger, alleging it would drive up fares for some of the most price-sensitive consumers. "JetBlue plans to convert Spirit's planes to the JetBlue layout and charge JetBlue's higher average fares to its customers," U.S. District Court Judge William Young wrote in his decision. "The elimination of Spirit would harm cost-conscious travelers who rely on Spirit's low fares." Spirit shares plunged after the ruling and were down more than 50%, while JetBlue's stock gained about 5%.

Persons: JetBlue's, William Young Organizations: LaGuardia, JetBlue, Spirit Airlines, JetBlue Airways, Justice Department, DOJ Locations: New York, Delta, U.S

☆ Spirit Airlines shares plunge after judge blocks JetBlue merger
▼ + stars: | 2024-01-16 | by ( Krystal Hur | Chris Isidore | ) edition.cnn.com time to read: +3 min

New York CNN —Spirit Airlines shares tanked 52% on Tuesday after a federal judge in Boston ruled against JetBlue’s proposed $3.8 billion acquisition of the discount airline. The Biden administration has argued since taking office there needs to be greater competition between businesses, especially in the airline industry, to lower costs for consumers. “If not blocked, the merger of JetBlue and Spirit would result in higher fares and fewer choices for tens of millions of travelers across the country. The Biden administration has taken a much more aggressive approach in fighting mergers and combinations, including in the airline industry. There is one other merger now being sought in the US airline industry, a proposed $1.9 billion deal to combine Alaska Airlines and Hawaiian Airlines.

Persons: JetBlue’s, ”, William Young, Biden, General Merrick Garland Organizations: New, New York CNN — Spirit Airlines, Defendant Airlines, JetBlue, CNN, US Justice Department, Spirit, The Justice, “ Companies, — American Airlines, United, Delta Air Lines, Southwest Airlines, Northeast, Alaska Airlines, Hawaiian Airlines, Hawaiian Holdings Locations: New York, Boston, American, Northeast United States

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