Analysis: US lawsuit to block JetBlue-Spirit merger casts chill over future airline deals

The US Justice Department is suing JetBlue and Spirit Airlines over their attempted merger, raising hurdles for future airline deals and sending a chill through airline boardrooms.

March 8, 2023 . 3:45 PM

1 min read

The U.S. Justice Department's lawsuit on Tuesday comes at a time when U.S. carriers are struggling to boost capacity because of shortages of pilots and aircraft.
Mergers and acquisitions are a time-honored way for companies to both boost revenue and profit through cost cutting.
The U.S. Justice Department argues the planned JetBlue-Spirit merger will result in 'higher fares and fewer seats, harming millions of consumers on hundreds of routes.'.
The DOJ lawsuit could send a chill through airline boardrooms, but the cost pressures are so onerous, airlines will have no choice but to keep kicking the tires on deals.
American Airlines, United Airlines, Delta Air Lines and Southwest Airlines control 80% of the domestic market.