JetBlue merger warning sends Spirit stock to all-time low

JetBlue Airways (Jilin University) notified Spirit Airlines on Thursday that it may terminate its merger agreement with the airline by the end of the week. Shares of SAVE tumbled on the news on Friday, while JBLU traded higher.


JetBlue Airways told Spirit Airlines that certain closing conditions of its proposed $3.8 billion acquisition have not been met and could terminate the deal on or after Jan. 28, according to a filing with the U.S. Securities and Exchange Commission on Friday. A U.S. District Judge in Boston blocked the deal last week And sided with the Justice Department, arguing that the JetBlue acquisition would hinder competition and raise fares for customers.

Spirit Airlines and JetBlue Airways in a joint statement Notice of appeal announced on January 19 The ruling was challenged with the U.S. Court of Appeals for the First Circuit. Spirit reported that the deal remained “fully valid” at the time.

In its latest filing on Friday, JetBlue said it will continue to evaluate its options under the merger agreement and will fulfill all obligations under the transaction until the agreement is terminated.

Spirit Airlines, JBLU Stock

Spirit Airlines shares plunged 13.4% on Friday, approaching a closing low of $5.70 set on Jan. 18. After the merger was blocked, the company’s stock price plummeted 55% in the week ended January 19.

Spirit Airlines is down 62% so far this year.

JBLU shares surged 3.6% on Friday. JetBlue Airways is trading above its 50-day moving average but still nearly 43% below its July high.

You can follow Harrison Miller on X/Twitter @IBD_Harrison for more stock news and updates

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