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Judge blocks JetBlue-Spirit Airlines merger
MarketWatch reporter Jon Swartz joins LiveNOW's Andrew Craft to discuss the news that a federal judge has blocked JetBlue from acquiring Spirit Airlines and what it means.
JetBlue will end service in Kansas City, Missouri, and cut routes in Los Angeles and Fort Lauderdale in an effort to return to profitability after four years of losses.
JetBlue has lost more than $2 billion since its last profitable year, 2019. The airline tried to grow through a partnership and a merger, but the Biden administration’s Justice Department sued to kill both deals.
"JetBlue is constantly evaluating our routes to best serve our customers, return our airline to profitability, and find ways to improve our reliability," a JetBlue spokesperson told FOX TV Stations.
Last May, a federal judge ordered JetBlue and American Airlines to dissolve a partnership they created in Boston and New York. In January another judge blocked JetBlue from buying Spirit, saying the proposed $3.8 billion deal violated antitrust law.
Frustrated by the courtroom defeats, JetBlue, under new CEO Joanna Geraghty, is turning toward growing on its own, which will take much longer.
Where is JetBlue ending service?
A JetBlue airlines jet flies over Nickerson Beach Park on September 04, 2023 in Lido Beach, New York. (Photo by Bruce Bennett/Getty Images)
JetBlue says it’s ending service in the following cities worldwide:
- Kansas City, Missouri
- Bogotá, Colombia
- Quito, Ecuador
- Lima, Peru
Flights to Newburgh, New York, which has been suspended since 2020, will not return to service.
"These decisions are never easy, however, these markets have recently fallen short of our expectations," JetBlue said. "These moves will allow us to redeploy our fleet to increase frequencies on well-performing routes from JetBlue’s focus cities while continuing to increase crucial ground time for our aircraft, reducing the chance of delays for our customers.
"The changes will also help us during a time when aircraft availability is limited – particularly with some of our aircraft grounded due to Pratt & Whitney GTF engine inspections."
JetBlue said most customers who have already paid for flights on these routes will be able to select alternative flights. Those who aren’t able to do so will get a refund.