Federal judge opposed the acquisition plan saying it would harm competition and lead to higher fares.
Spirit Airlines stock SAVE is losing the wind beneath its wings as investors are taking a flight to safety far from the troubled carrier. Shares of the airline cratered more than 60% in the past two days as the company’s intended acquisition by JetBlue Airlines was rejected by a federal judge.
The deal, valued at $3.8 billion, was blocked after the ruling said it would harm cost-sensitive fliers, hamper competition and lead to higher fares. Indeed, JetBlue said they were planning to rip rows out of the ultra-low-cost cramped planes of Spirit and adapt them to their own configuration.
Both sides have not yet announced the next steps in the thwarted merger except for saying it was still the “best opportunity” to help competition. Shares of JetBlue Airways JBLU took a hit as well, falling by nearly 9% on Wednesday, adding to a 10% loss for the week.