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.
