JetBlue’s $3.8 Billion Acquisition of Spirit Airlines Blocked by Federal Judge on Antitrust Grounds, Trader Profits $770,000 on $SAVE Puts

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JetBlue-Spirit Airlines merger blocked by judge over fears it would hurt competition

A federal judge on Tuesday sided with the Biden administration to block JetBlue Airways from buying Spirit Airlines, saying the $3.8 billion deal would limit industry competition and put pressure on airfares.

The Justice Department sued to block the merger, saying that JetBlue’s buyout of Spirit, the nation’s largest low-cost carrier, would reduce the availability of budget-friendly ticket options for the nation’s most price-sensitive consumers.

JetBlue argued that the deal would actually benefit consumers by better positioning the airline to compete against bigger rivals that dominate the U.S. air-travel market.