Spirit Airlines (NYSE: SAVE) is trying to persuade JetBlue Airways (NASDAQ: JBLU) to challenge a federal judge’s decision that blocked their planned $3.8 billion sale. According to a Reuters report, Spirit has informed JetBlue that the deal contract obliges them to explore all legal options to finalize the transaction, urging them to appeal the judge’s decision.
JetBlue has not yet made a decision on whether to pursue an appeal, as reported by Reuters, citing sources. They are weighing the chances of winning an appeal and considering that Spirit’s business has significantly declined since the deal was initially agreed upon in July 2022.
In a joint statement on Tuesday, Spirit and JetBlue stated that they are reviewing the court’s decision and assessing the next steps in the legal process.
Since the judge blocked the JetBlue deal on Tuesday, Spirit’s shares have dropped by 53%, but they saw a 22% increase on Friday after the low-cost carrier issued preliminary estimates for Q4 as part of a business update.
On Friday, Spirit Airlines expressed disagreement with the recent U.S. District Court ruling, maintaining that a combination with JetBlue Airways presents the best opportunity to enhance competition and choice, offering low fares and excellent service.
According to CNBC, JetBlue is cutting several routes in an attempt to become profitable after the Spirit deal was blocked.
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