JetBlue Airways Corporation (JetBlue) has decided to abandon its $3.8 billion acquisition of Spirit Airlines Inc. (Spirit), following a ruling by the U.S. District Court for the District of Massachusetts that deemed the transaction in violation of antitrust laws. In response to JetBlue's decision, Attorney General Merrick B. Garland stated, "Today’s decision by JetBlue is yet another victory for the Justice Department’s work on behalf of American consumers." He emphasized the importance of protecting markets from anticompetitive harm.
Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division also expressed satisfaction with the outcome, remarking, "Our win in court is a victory for U.S. travelers who deserve lower prices and better choices." Kanter praised the efforts of the Antitrust Division's team and their dedication to advocating for consumers throughout the legal proceedings.
The District Court's decision to block the acquisition came after a 17-day trial that commenced in October 2023. The Justice Department, along with several states including California, Maryland, Massachusetts, New Jersey, New York, North Carolina, and the District of Columbia, had filed a lawsuit in March 2023 to prevent the merger under Section 7 of the Clayton Act. The lawsuit alleged that allowing the acquisition to proceed would lead to increased prices on competitive routes, as JetBlue aimed to eliminate its main ultra-low-cost competitor, ultimately limiting choices for travelers.