JetBlue merger with Spirit Airlines blocked by federal judge

A federal judge in the USA today (16/01) has blocked JetBlue Airways' forthcoming purchase of Spirit Airlines, after the US Department of Justice argued that the deal was anti-competitive and would hurt consumers.

Both JetBlue and Spirit have released a joint statement disagreeing with the ruling, stating they are evaluating their next steps.

JetBlue are in talks with Spirit Airlines to purchase Spirit at a proposed $3.8bn - a deal that the DOJ argued would harm cost-conscious travelers who rely on Spirit's low fares.

Spirit Airlines is an ultra-low cost airline headquartered in Florida - this deal would have produced the USA's fifth largest airline, hoping to compete with larger rivals like Delta and United. Spirit's stock [NYSE: SAVE] immediately plummeted -61% following this ruling, before settling around -50% of it's prior stock price. JetBlue's stock [NASDAQ: JBLU] is currently up by +6%.

A frustrating day for JetBlue but a big win for the US DOJ. What are your thoughts? Do you think this would have helped or hindered consumers? Let us know in the comments below.