JetBlue announced that it has reached an agreement with Spirit Airlines to terminate their July 2022 merger agreement.
Although both companies continue to believe in the pro-competitive benefits of the combination, according to the announcement, they mutually agreed that terminating is the best path forward for both companies as required closing conditions, including receiving necessary legal and regulatory approvals, were unlikely to be met by the merger agreement’s outside date of July 24, 2024.
Joanna Geraghty, CEO of JetBlue, said the airline believed this merger was worth pursuing because “it would have unleashed a national low-fare, high-value competitor to the Big Four airlines… but given the hurdles to closing that remain, we decided together that both airlines’ interests are better served by moving forward independently.”
Under the agreement, JetBlue will pay Spirit $69 million and the termination resolves all outstanding matters related to the transaction and under which any claims between them will be mutually released.
As outlined on the company’s fourth quarter earnings call, JetBlue is taking decisive action to return to sustained profitability and drive shareholder value. As part of this work, the company is refocusing on its core strengths – deepening its network relevance in proven geographies and better segmenting its product offerings to enhance its competitive position – while delivering meaningful cost savings.
