SAVE - Airlines scramble: JetBlue shifts focus to Spirits Airlines American Airlines appeals DOJ ruling

2023-07-05 16:28:10 ET

JetBlue Airways Corporation ( NASDAQ: JBLU ) fired off a statement late on Wednesday about the carrier's Northeast Alliance with American Airlines Group ( AAL ).

The airline company said it  strongly disagrees with the court’s ruling against the NEA and stands behind the procompetitive impact of the alliance.

"Despite our deep conviction in the procompetitive benefits of the NEA, after much consideration, JetBlue has made the difficult decision not to appeal the court’s determination that the NEA cannot continue as currently crafted, and has instead initiated the termination of the NEA, beginning a wind down process that will take place over the coming months."

With that decision now in the books, JetBlue ( JBLU ) plans to increase its focus to the proposed merger with Spirit Airlines ( SAVE ), which it called the best and most effective opportunity to truly transform the competitive landscape in the U.S. Of note, JetBlue ( JBLU ) maintained that the NEA termination renders the Department of Justice’s concerns about partnerships with legacy carriers entirely moot. The company is asking the DOJ to reconsider and support its plan to bring a national low-fare competitor to the Big Four.

Shares of JetBlue ( JBLU ) fell 0.35% in postmarket trading, while Spirit Airways ( SAVE ) moved up 2.48% . American Airlines Group ( AAL ) traded flat in the late session. For its part, AAL said it planned to still challenge the DOJ ruling on the alliance, despite the JetBlue ( JBLU ) audible.

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