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A federal judge on Tuesday blocked JetBlue Airways' proposed $3.8 billion takeover of low-cost carrier Spirit Airlines, agreeing with the Justice Department's opinion that the deal would harm the availability of low-cost flights.
U.S. District Judge William Young said the proposed merger “violates the core principle of antitrust law: protecting U.S. markets and their market participants from anticompetitive harm.”
Spirit's stock price plunged on the news, dropping more than 51% in afternoon trading Tuesday. The Dow Jones Market Data Group noted that Spirit's stock price has fallen near record lows following the ruling, the largest percentage decline in its history.
A JetBlue airliner overtakes a Spirit Airlines jet to land at Fort Lauderdale-Hollywood International Airport on April 25, 2022. (Joe Cavaletta/Sun Sentinel/Tribune News Service via Getty Images/Getty Images)
JetBlue and Spirit can appeal the judge's ruling if they still want to pursue a merger.
This is a developing story. Please check back for the latest information.
Reuters contributed to this report.
