Deals
Spirit CEO Says Pandemic Losses Pushed It to JetBlue Merger
- US seeks to block the $3.8 billion deal at antitrust trial
- Spirit says it needs JetBlue to compete with big carriers
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Spirit Airlines Inc.’s top executive told a judge that the low-cost carrier suffered years of pandemic-fueled losses that show no signs of ending, which pushed the company into a merger with JetBlue Airways Corp. that the US government now wants to prevent.
Higher costs for fuel, labor and maintenance compounded the impact of the loss of travelers after the Covid-19 outbreak, and Spirit is on track for its fourth consecutive annual loss, Chief Executive Officer Ted Christie testified Wednesday during the second day of an antitrust trial in Boston. “We’re expecting it to continue to get worse into 2025,” he said.