JetBlue gives up on merger with Spirit Airlines
JetBlue has admitted defeat and terminated its airline merger agreement with Spirit Airlines.
JetBlue says both carriers mutually agreed that terminating it is the best path forward now for both companies.
“We believed this merger was worth pursuing because it would have unleashed a national low-fare, high-value competitor to the Big Four airlines,” new JetBlue CEO Joanna Geraghty said.
“We are proud of the work we did with Spirit, but given the hurdles to closing, we decided together that both airlines’ interests are better served by moving forward independently.”
“We wish the very best going forward to the entire Spirit team.”
Under the agreement, JetBlue will pay Spirit $69 million and the termination resolves all outstanding matters related to the transaction.
Geraghty added: “We have already begun to advance our plan to restore profitability. We look forward to sharing more on our progress in the coming months.”
Now, JetBlue will focus on several near-term revenue initiatives for 2024.
These include increased distribution and partnerships, expanded loyalty program functionality, and ancillary initiatives,
These are expected to deliver over $300 million in revenue benefits, it says.
JetBlue will host an Investor Day on May 30, 2024, to share more details on its long-term strategy and revenue and cost initiatives.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
Ron OsterMar 06, 2024 01:59 PM
Just wondering if anyone knows why, or has an answer, as to why American Airlines is so very very anti-travel agent these days? I no longer feel partnership, but rather hate. It appears they are attempting to put travel agencies out of business, as they tried back in 2002 (if I recall correctly) when they were the first carrier to pay zero commission and instigated all other carriers to follow suit. I am not sure of the exact percentage of air tickets we issue on their behalf (for free I might add) costing them nothing as they do not pay a single cent for any of our efforts, yet they charge their very own passengers outrageous amounts of money for baggage and even a seat assignment. It seems so out of control and I'm amazed DOT, or some other government agency, has not stepped in the halt the deadly hunt. The only thing I can possibly figure out is, they want us out of the way so they can have complete control over the general public giving them no choice on where to purchase their tickets, other than at www.aa.com or calling American on the phone. American should appreciate us, pay us a commission for issuing their tickets, and selling their products such as AA Vacations. It would literally cost them millions of dollars to replace us and hire thousands of new employees to pick up the slack if we are eliminated. Thanks.
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