US airline JetBlue's planned acquisition of low-cost carrier Spirit Airlines has been denied by a federal judge in the US, a decision that caused Spirit's stock to halve in value. JetBlue also picked up on the news.

The acquisition plans, which the companies announced in April 2022, were intended to be completed at a purchase price of approximately $3.8 billion, equivalent to SEK 40 billion at the current exchange rate.

Since then, however, the US Department of Justice has been opposed to such a deal, and in March last year filed a lawsuit to block the acquisition.

”JetBlue’s plan would eliminate the unique competition provided by Spirit, and about half of all low-cost carriers in the industry. It would also leave tens of millions of travelers facing higher prices and fewer options,” the Justice Department said at the time, according to CNBC.

By 8 p.m., Spirit shares were down more than 50 percent, while JetBlue's had risen 5 percent.

Source: Nyhetsbyrån Direkt