Shares of Spirit plunged more than 50% following the ruling on Thursday.
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A judge blocked JetBlue‘s deal to buy Spirit. Biden’s Justice Department said the merger would drive up airline prices. Shares of Spirit plunged more than 50% right after the ruling.
A federal judge is siding with the Biden administration and blocking JetBlue Airways from buying Spirit Airlines, saying the $3.8 billion deal would reduce competition.
The Justice Department sued to block the merger, saying it would drive up fares by eliminating Spirit, the nation’s biggest low-cost airline.
JetBlue argued that the deal would help consumers by making JetBlue a stronger competitor against bigger rivals that dominate the U.S. air-travel market.
U.S. District Judge William Young, who presided over a non-jury trial last year, said in the ruling Tuesday that the government had proven “that the merger would substantially lessen competition in a relevant market.”
Shares of Spirit Airlines Inc. plunged more than 53% almost immediately.