DALLAS 鈥� 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 , saying it would drive up fares by eliminating Spirit, the nation鈥檚 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.
READ MORE: JetBlue is stepping up a campaign to save its plan to buy Spirit Airlines for $3.8 billion
U.S. District Judge William Young, who presided over a non-jury trial last year, said in the ruling Tuesday that the government had proven that the merger 鈥渨ould substantially lessen competition鈥� and violated a century-old antitrust law.
鈥淪pirit is a small airline. But there are those who love it. To those dedicated customers of Spirit, this one鈥檚 for you,鈥� Young wrote.
Shares of Spirit Airlines Inc. plunged more than half almost immediately, while JetBlue shares gained 8%.
For JetBlue, the ruling was its second major setback in federal court in less than a year. Another judge in the same Boston courthouse killed a partnership in the Northeast between JetBlue and American Airlines.
JetBlue, the nation鈥檚 sixth-largest airline by revenue, now must come up with another growth plan. That will be an assignment for incoming CEO Joanna Geraghty. Next month she will , who had engineered both of the deals that have now been blocked in court.
