JetBlue primed to purchase Spirit Airlines following shareholder approval

A JetBlue plane takes off near Spirit planes.
(Image credit: Joe Raedle/Getty Images)

Spirit Airlines shareholders have approved a $3.8 billion takeover by JetBlue Airways, in a deal that looks primed to create the fifth-largest airline in the United States.

Spirit made the announcement in a Wednesday press release, with more than 50 percent of the stock owners voting to approve the deal. The merger must now go through the final regulatory steps, and Spirit said they expect the transaction to close "no later than the first half of 2024."

JetBlue first made the multi-billion, total-cash offer for Spirit earlier this year, and the two came to a preliminary agreement in July following a series of hostile negotiations. Spirit was also in talks to merge with Frontier Airlines in a cash-and-stock deal that fell apart following JetBlue's offer.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE
https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up

JetBlue is planning to eliminate the Spirit brand following the takeover, CNBC reported, with the outlet noting how Spirit's low-cost airfares and minimal frills contrast with JetBlue's higher-end service and business-class offerings. JetBlue is reportedly planning to retrofit Spirit's planes to more closely resemble its own.

However, the transaction is likely to face heavy scrutiny from antitrust regulators. The Biden administration has argued against these types of megadeals, saying they are harmful to consumer spending. Biden and his legal team have made significant efforts to try and tone down corporate mergers, though they've often had little success in court.

JetBlue and Spirit have denied breaking any antitrust laws, and said they look forward to continuing their work with federal regulators.

Explore More
Justin Klawans, The Week US

Justin Klawans has worked as a staff writer at The Week since 2022. He began his career covering local news before joining Newsweek as a breaking news reporter, where he wrote about politics, national and global affairs, business, crime, sports, film, television and other news. Justin has also freelanced for outlets including Collider and United Press International.