JetBlue and Spirit Airlines agree to terminate their 2022 merger agreement after regulatory pushback

JetBlue Airways Corp.
JBLU,
-0.15%
and Spirit Airlines Inc.
SAVE,
+0.16%
said Monday they have reached an agreement to terminate their July 2022 merger agreement. “Although both companies continue to believe in the procompetitive benefits of the combination, JetBlue and Spirit mutually agreed that terminating is the best path forward for both companies as required closing conditions, including receiving necessary legal and regulatory approvals, were unlikely to be met by the merger agreement’s outside date of July 24, 2024,” the companies said. JetBlue CEO Joanna Geraghty said the pair believed their combination would have created a national, low-fare, high-value competitor to the big four airlines. JetBlue will now pay Spirit a $69 million breakup fee to release all claims between the two companies. “JetBlue has a strong organic plan and unique competitive advantages, including a beloved brand, a unique value proposition, and high-value geographies,” Geraghty said in a statement. JetBlue’s stock rose 6% premarket on the news.