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Spirit Airlines plunges as JetBlue says merger agreement 'may be terminable'

Published 2024-01-26, 09:32 a/m
© Reuters.
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Spirit Airlines (NYSE:SAVE) shares tumbled a further 20% Friday after JetBlue Airways (NASDAQ:JBLU) said the merger agreement "may be terminable."

In a filing with the SEC, JetBlue said it informed Spirit that certain conditions to closing required by the deal "may not be satisfied" before the agreed deadline, and as a result, the agreement "may be terminable on and after January 28, 2024."

JetBlue added that it continues to evaluate its options under the merger agreement.

At the time of writing, SAVE shares are trading below $6 per share after a more than 20% decline, while JBLU shares are up 3% at $5.50 per share.

Earlier this month, a federal judge blocked JetBlue Airways' $3.8 billion acquisition of budget carrier Spirit Airlines. It agreed with the US Department of Justice that the deal would impact competition.

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