JetBlue Airways is backing out of its deal to buy Spirit Airlines after the acquisition was blocked by a federal judge earlier this year over antitrust concerns.
“Given the hurdles to closing that remain, we decided together that both airlines’ interests are better served by moving forward independently,” JetBlue CEO Joanna Geraghty said in a statement.
The deal that would have seen the two budget airlines merge is now off the table after it grew more unlikely they would secure the mandatory legal and regulatory approvals in time to proceed with the deal.
Now, JetBlue will pay Spirit $69 million to resolve any remaining matters related to their failed merger.
Spirit CEO Ted Christie shared in a statement that the airline is now shifting and is “confident in our future as a successful independent airline.”
The deal was blocked by federal judge William Young in January, who said that it would weaken competition by eliminating a major bargain airline. The judge said it would have had a ripple effect and caused the price for travelers to rise.
Young wrote in his ruling that the deal would “harm cost-conscious travelers who rely on Spirit’s low fares.”