The Planned Acquisition of Budget Carrier Spirit by US Airline JetBlue Unexpectedly Canceled

After approximately one and a half years, the planned takeover of the budget carrier Spirit by the US airline JetBlue has been unexpectedly canceled. As the New York-based company announced on Monday, among other things, regulatory approvals had not been achieved in time for the set deadline at the end of July. As a result, both companies have decided not to pursue the acquisition worth 3.8 billion US dollars (3.5 billion euros). This decision led to significant reactions in the financial markets, as shares of Spirit experienced a 12.46 percent decline in NYSE trading following the announcement, dropping to 5.66 US dollars.

In contrast, JetBlue's shares rose by 3.17 percent to 6.68 US dollars. As early as January, JetBlue had prepared the public for a possible deal collapse when a US court blocked the acquisition due to concerns about competition and potential price increases for consumers. Due to the now aborted acquisition, JetBlue reportedly has to pay a fee of 69 million US dollars.

JetBlue emerged victorious in the summer of 2022, after months of bidding war, against its competitor Frontier and won the bid to purchase Spirit. Previously, Spirit's boards had long favored the lower offer from Frontier as they had doubts about the antitrust approval of a deal with JetBlue. The deal is now definitively off the table, and JetBlue must look elsewhere to strengthen its position in the competitive budget airline market.