NEWS: Federal Judge BLOCKS Spirit Airlines and JetBlue Airways Merger

The airline industry has been a hot topic over the past few years.

Airlines are a hot topic!

From the pandemic affecting travels, to the mass Southwest cancellations that led to a Senate hearing, to the ongoing pilot shortage, it’s safe to say that major airlines seem to always be in the headlines. Now, though, two popular airline choices are in the news now that a federal judge has blocked a major step forward. Let’s talk about it!

In 2022, Spirit Airlines and JetBlue Airways proposed a $3.8 billion merger deal, which would allow Frontier Airlines to take Spirit’s place as the top domestic choice for low airfare, while the acquisition of Spirit would allow JetBlue to compete with the Big 4 of U.S. airlines: Delta, United, American, and Southwest.

Spirit Airlines at Orlando Airport

Now, though, a federal judge in Boston has blocked the proposed merger, stating that the removal of a low-fare airline could drastically impact the industry as a whole economically. Per the Orlando Sentinel, U.S. District Judge William G. Young issued a 113-page ruling that reasoned that while the merger might “well pressure” those four major airlines we mentioned earlier, it would harm the industry overall since travelers would no longer have one of the major budget airlines.

©Spirit Airlines

Currently, Spirit Airlines is the nation’s seventh largest airline, with JetBlue just ahead in sixth place. The competition between the two is beneficial, as it pushes each airlines’ prices lower and lower.

Spirit Airlines

Things are a bit sticky right now, though, as Spirit Airlines stakeholders have sold their shares. The Orlando Sentinel said that Spirit stocks have dropped more than 53%, while JetBlue’s have risen by 5%.

View from the plane

We’ll be sure to keep you updated with more travel and airline news, so make sure to follow along for more so that you’re always in the loop.

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The post NEWS: Federal Judge BLOCKS Spirit Airlines and JetBlue Airways Merger first appeared on the disney food blog.