Federal judge blocks JetBlue-Spirit merger protecting budget airline competition

US District Judge William Young rules in favor of the Biden Justice Department, blocking the proposed $3.8 billion merger between JetBlue Airways and Spirit Airlines. The DOJ had argued that eliminating Spirit, the largest ultra-low-cost carrier in the US, would reduce competition and raise prices for price-sensitive travelers, particularly on routes where Spirit's low fares discipline all competitors' pricing. Spirit appeals and then cancels the merger in March 2024. The ruling follows the DOJ's earlier successful challenge to the American Airlines-JetBlue "Northeast Alliance" and reflects the Biden administration's aggressive stance on airline industry consolidation.