JetBlue-Spirit Merger Trial Tests US Airline Deal Crackdown

DOJ claims combination will hurt competition, boost air fares
Companies say they need deal to compete with bigger carriers

Spirit Airlines and JetBlue planes at LaGuardia Airport (LGA) in the Queens borough of New York, US, on Thursday, June 8, 2023. The Federal Aviation Administration said LaGuardia Airport flights have now been placed under a ground delay program after being grounded due to poor visibility.Photographer: Michael Nagle/Bloomberg

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By Madlin Mekelburg, Mary Schlangenstein, and Yiqin Shen

October 31, 2023 at 10:00 AM UTC

Updated on

October 31, 2023 at 12:38 PM UTC

This article is for subscribers only.

The US crackdown on airline consolidation faces a new test this week with the trial of a government lawsuit claiming the $3.8 billion takeover of Spirit Airlines Inc. by JetBlue Airways Corp. would reduce competition and boost fares for passengers.

While investors consider approval of the deal to be a long shot, the trial set to start Tuesday before a federal judge in Boston comes at a critical time for the industry. Domestic low-cost carriers have cut service as fares slide and travel slows, while antitrust regulators crack down on airline consolidation after decades of lax enforcement.