The big merger between Spirit and Jetblue airlines will no longer happen after a federal judge blocked it.
The decision is a big victory for the Justice Department, which sued to stop the deal, claiming it would unfairly raise fees.
However, Jetblue says it would do the opposite and work to reduce fares.
In his more than 100-page ruling, the federal judge gave a nod to the Justice Department’s argument that Spirit is especially important to travelers looking for an alternative to more expensive airlines.
“Spirit is a small airline. But there are those who love it,” he wrote. “For those dedicated Spirit customers, this is for you.”
Shares of Spirit Airlines Inc. plummeted 47% after the ruling, while JetBlue gained 5%.
The merger would have created the country’s fifth-largest airline.
Both companies disagree with the ruling and say they are evaluating their next steps.
The ruling marked a victory for the Biden administration, which has moved aggressively to block consolidation in several sectors.
“Capitalism without competition is not capitalism, it is exploitation,” President Joe Biden said on X, formerly known as Twitter.
“Today’s ruling is a victory for consumers around the world who want lower prices and more choices. My Administration will continue to fight to protect consumers and enforce our antitrust laws,” he said.
