Revenue Agenda
  • Investing
  • Latest News
  • Editor’s Pick
  • Economy
  • Investing
  • Latest News
  • Editor’s Pick
  • Economy
No Result
View All Result
Revenue Agenda
No Result
View All Result
Home Editor's Pick

JetBlue and Spirit Airlines terminate $3.8 billion merger

by
March 5, 2024
in Editor's Pick
0
JetBlue and Spirit Airlines terminate $3.8 billion merger
0
SHARES
4
VIEWS
Share on FacebookShare on Twitter

JetBlue Airways and Spirit Airlines on Monday said they were terminating their merger agreement weeks after losing a federal antitrust lawsuit that challenged the deal.

A federal judge blocked the attempted merger in January after the Justice Department sued to bar the deal last year alleging 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%.

“It was a bold and courageous plan intended to shake up the industry status quo, and we were right to compete with Frontier and go for an opportunity that would have supercharged our growth and provided more opportunities for crewmembers,” JetBlue CEO Joanna Geraghty said in a note to staff Monday.

“However, with the ruling from the federal court and the Department of Justice’s continued opposition, the probability of getting the green light to move forward with the merger anytime soon is extremely low.”

JetBlue’s prospective purchase of Spirit would have been a buoy for the struggling discounter airline, which is facing the grounding of dozens of its Airbus planes for inspections stemming from a Pratt & Whitney engine defect. Spirit expects compensation from the engine maker as a result of the flaw.

With the deal off the table, Spirit must confront its financial problems alone, something its leaders say it is equipped to do.

The company said it was working to refinance its debt, and last month said it was on a path back to profitability thanks to better-than-expected demand. It projected revenue for the first quarter above analysts’ expectations.

“Throughout the transaction process, given the regulatory uncertainty, we have always considered the possibility of continuing to operate as a standalone business and have been evaluating and implementing several initiatives that will enable us to bolster profitability and elevate the Guest experience,” Spirit CEO Ted Christie said in a release.

He said Spirit shareholders received $425 million in prepayments from JetBlue during the agreement, and that JetBlue will pay Spirit $69 million related to the agreement’s termination.

This post appeared first on NBC NEWS
Previous Post

Bitcoin approaches new all-time high after surpassing $65,000

Next Post

Supreme Court ruling darkens critics’ hopes for a judicial curb on Trump

Next Post
Supreme Court ruling darkens critics’ hopes for a judicial curb on Trump

Supreme Court ruling darkens critics’ hopes for a judicial curb on Trump

  • Trending
  • Comments
  • Latest
Top 10 Potash Countries by Production (Updated 2024)

Top 10 Potash Countries by Production (Updated 2024)

August 21, 2024
Top 10 Phosphate Countries by Production (Updated 2024)

Top 10 Phosphate Countries by Production (Updated 2024)

August 1, 2024
Top 10 Uranium-producing Countries (Updated 2024)

Top 10 Uranium-producing Countries (Updated 2024)

November 6, 2024
7 Biggest Lithium-mining Companies in 2024

7 Biggest Lithium-mining Companies in 2024

September 18, 2024
DFS Presentation

DFS Presentation

0
New Hampshire Gov. Sununu signs $15.2B ‘miracle’ budget into law

New Hampshire Gov. Sununu signs $15.2B ‘miracle’ budget into law

0

Pennsylvania House clears tax credits for new teachers, nurses, police officers

0
Evers signs bipartisan sales tax bill aimed at sparing Milwaukee from bankruptcy

Evers signs bipartisan sales tax bill aimed at sparing Milwaukee from bankruptcy

0
DFS Presentation

DFS Presentation

June 30, 2025
A$4.5M Placement to Underpin Resource Growth Strategy

A$4.5M Placement to Underpin Resource Growth Strategy

June 30, 2025
A$2.7m Equity Placement to Fund Laverton Drilling Campaign

A$2.7m Equity Placement to Fund Laverton Drilling Campaign

June 30, 2025
Merger Discussions Between Brightstar and Aurumin

Merger Discussions Between Brightstar and Aurumin

June 30, 2025
Enter Your Information Below To Receive Trading Ideas and Latest News

Error: Contact form not found.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Recent News

DFS Presentation

DFS Presentation

June 30, 2025
A$4.5M Placement to Underpin Resource Growth Strategy

A$4.5M Placement to Underpin Resource Growth Strategy

June 30, 2025
A$2.7m Equity Placement to Fund Laverton Drilling Campaign

A$2.7m Equity Placement to Fund Laverton Drilling Campaign

June 30, 2025
Merger Discussions Between Brightstar and Aurumin

Merger Discussions Between Brightstar and Aurumin

June 30, 2025
  • About us
  • Privacy Policy
  • Terms & Conditions
  • About us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 revenueagenda.com | All Rights Reserved

No Result
View All Result
  • Investing
  • Latest News
  • Editor’s Pick
  • Economy

Copyright © 2025 revenueagenda.com | All Rights Reserved