Spirit Airlines stock tanks 20% as $JBLU terminates merger plan

Spirit Airlines Inc tanked 20% in premarket on Monday after JetBlue Airways Corporation terminated its $3.8 billion merger agreement with the ultra-low-cost carrier.

The news arrives shortly after a federal judge blocked $JBLU from buying Spirit Airlines – citing the deal could increase fares for price-sensitive travellers.

JetBlue and $SAVE had together appealed that ruling in line with terms of the planned transaction. Joanna Geraghty – chief executive of JetBlue said today:

“We were right to compete with Frontier and go for an opportunity that would have supercharged our growth and provided more opportunities for crewmembers.”

Shares of JetBlue Airways Corporation that do not currently pay a dividend yield are slightly in the green following the news this morning.  

This is a developing story. Check back in a few minutes for more updates!

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