JetBlue Airways and Spirit Airlines are ending their proposed US$3.8 billion merger weeks after a federal judge blocked the the deal, saying it would hurt consumers who depend on Spirit's lower fares.
JetBlue said Monday that even though both companies still believe in the deal, they were unlikely to meet the closing conditions required in the agreement before a July 24 deadline.
JetBlue's new CEO, Joanna Geraghty, called the merger "a bold and courageous plan intended to shake up the industry status quo" and speed JetBlue's growth.
"However, with the ruling from the federal court and the Department of Justice's continued opposition, the probability of getting the green light to move forward with the merger anytime soon is extremely low," Geraghty said in a memo to employees of New York airline. She said uncertainty over the merger's fate was distracting the airline from its effort to return to profitability.
Spirit CEO Ted Christie said he was disappointed that the airlines could not combine and create a new challenger to the nation's four biggest airlines but said he is confident that Spirit -- which has been losing money since the pandemic started -- can succeed on its own.
JetBlue will pay Spirit a US$69 million termination fee.
The Justice Department sued to block the merger last year, saying it would reduce competition and drive up fares, especially for travelers who depend on low-fare Spirit.
In January, a federal district judge in Boston sided with the government and blocked the deal, saying it violated antitrust law.
On Monday, the Justice Department took a victory lap.
"Today's decision by JetBlue is yet another victory for the Justice Department's work on behalf of American consumers," Attorney General Merrick Garland said in a statement. "The Justice Department proved in court that a merger between JetBlue and Spirit would have caused tens of millions of travelers to face higher fares and fewer choices. We will continue to vigorously enforce the nation's antitrust laws."
The airlines had appealed the ruling, and a hearing had been set for June in the 1st U.S. Circuit Court of Appeals in Boston.
The Biden administration's Justice Department, which has fought against consolidation in several industries, previously killed a partnership between JetBlue and American Airlines on flights in New York and Boston.
Spirit and Frontier Airlines announced a US$2.2 billion merger in early 2022 -- a deal that would have combined two similar carriers that charge lower fares than the big airlines but add on fees that generate a large chunk of their revenue.
JetBlue jumped into the fray against the wishes of Spirit's management, which warned that it would be difficult to win regulatory approval for a Spirit-JetBlue combination. JetBlue went over the heads of Spirit's board, directly to Spirit's shareholders, and won a bidding war against rival Frontier a few month later.
While the deal was taking shape and wound up in court, there were continuing losses and other problems at Spirit, which is based in Miramar, Florida. In late January, JetBlue warned that it might terminate the agreement.
JetBlue has also been losing money and faces its own uncertain future. Activist investor Carl Icahn bought nearly 10 per cent of JetBlue stock last month and won two seats on JetBlue's board.
The end of the JetBlue-Spirit deal raises questions about whether Alaska Airlines can pull off its proposed purchase of Hawaiian Airlines for US$1 billion plus the assumption of about US$900 million in debt. The Justice Department has not indicated whether it will sue to block that agreement.
Shares of Spirit Airlines Inc. sank 16 per cent in late-morning trading, while shares of JetBlue Airways Corp. rose slightly.
Florida's storm-battered Gulf Coast raced against a Category 5 hurricane Monday as workers sprinted to pick up heaps of appliances and other street debris left over from Helene two weeks ago and highways were clogged with people fleeing ahead of the storm.
Days after a political sign was erected outside Chip Wilson's Vancouver mansion, the waterfront property has been vandalized with graffiti.
Hurricane Milton quickly intensified to a Category 5 storm on Monday, reaching the most dangerous rank on what's known as the Saffir-Simpson Hurricane Wind Scale.
Two people are in hospital after they were chased and shot at in what appears to be an act of road rage before eventually flipping their car while trying to escape, police say.
A disgraced Winnipeg high school football coach convicted of sexual assault and luring will spend 20 years behind bars.
Despite Hurricane Milton evolving into a Category 5 storm, Walt Disney World Resort remains open to the public and will operate as normal. However, the park announced Monday a few closures in an abundance of caution.
Sammy Basso, who was the longest living survivor of the rare genetic disease progeria, has died at the age of 28, the Italian Progeria Association said on Sunday.
Ceremonies, events and protests are being held across Canada today to mark the anniversary of a Hamas attack on Israel that triggered the ongoing war in Gaza.
The day after a minivan was set ablaze outside Vancouver City Hall, a 78-year-old man has been criminally charged.
A disgraced Winnipeg high school football coach convicted of sexual assault and luring will spend 20 years behind bars.
Videos of a meteor streaking across the skies of southern Ontario have surfaced and small bits of the outer space rock may have made it to land, one astronomy professor says.
Days after a political sign was erected outside Chip Wilson's Vancouver mansion, the waterfront property has been vandalized with graffiti.
Two people are in hospital after they were chased and shot at in what appears to be an act of road rage before eventually flipping their car while trying to escape, police say.
The day after a minivan was set ablaze outside Vancouver City Hall, a 78-year-old man has been criminally charged.
A Canadian soldier who was exposed to toxic chemicals from burn pits while serving in Afghanistan has been awarded full medical compensation for testicular cancer after Veterans Affairs initially denied his claim.
Palestinian militants in Gaza fired a barrage of rockets into Israel on Monday as mourners marked the anniversary of the Oct. 7 attack, without disrupting a nearby ceremony. Here is the latest.
A canyoneer died in Zion National Park after falling between 150 and 200 feet near the the Upper Emerald Pool in southwest Utah, according to the National Park Service.
The mayor of a state capital in southern Mexico has been killed just one week after he took office, officials said Sunday.
Despite Hurricane Milton evolving into a Category 5 storm, Walt Disney World Resort remains open to the public and will operate as normal. However, the park announced Monday a few closures in an abundance of caution.
Republican presidential candidate Donald Trump said on Monday there are 'a lot of bad genes' in the United States, while discussing murders allegedly committed by immigrants living illegally in the United States.
The Bay Area's fog-shrouded coast seems tailor-made for hiding ghosts from the past. But now, a research team has pulled back the curtain on a mystery that's endured for nearly 80 years: the location of a U.S. Navy destroyer known as the 'Ghost Ship of the Pacific.'
Global Affairs Canada says it's chartering more flights from Lebanon this week to help Canadians leave the country as conflict escalates between Israel and Hezbollah.
Federal political parties appear to be locked in a game of chicken over a debate that has stalled almost all business in the House of Commons.
A newly released document shows federal cabinet ministers were warned in May 2022 that hostile states were targeting Canada's strategic interests, the integrity of Canadian institutions and democratic processes, and the ability of the public to exercise Charter-protected rights and freedoms.
Georgia's highest court reinstated a ban on nearly all abortions after about six weeks of pregnancy on Monday while it considers the U.S. state's appeal of last week's ruling by a lower court judge blocking the law.
Sammy Basso, who was the longest living survivor of the rare genetic disease progeria, has died at the age of 28, the Italian Progeria Association said on Sunday.
If your household has recently been hit by a power outage, here are ways to keep your food safe.
A spacecraft blasted off Monday to investigate the scene of a cosmic crash.
The best minds in science will be thrust from academic obscurity into the spotlight this week when the Nobel Prizes in physics, chemistry, and physiology or medicine are announced. However, there is no shortage of Nobel-worthy discoveries: Here are five breakthroughs that haven't resulted in a life-changing call from Stockholm — at least not yet.
Scientists announced on Thursday a milestone in neurobiological research with the mapping of the entire brain of an adult fruit fly, a feat that may provide insight into brains across the animal kingdom, including people.
Cissy Houston, the mother of the late Whitney Houston and a two-time Grammy winner who performed alongside superstar musicians like Elvis Presley, and Aretha Franklin, has died. She was 91.
Ticketmaster is enforcing new rules around how fans transfer Taylor Swift tickets amid a surge in reported scams.
It's been nearly 30 years since 'The Puppy Episode' of Ellen DeGeneres' hit sitcom 'Ellen' aired, where her fictional counterpart came out as gay.
Canada's telecommunications regulator says the country's largest cellphone carriers must take steps to make their international roaming rates more affordable.
FTX received court approval of its bankruptcy plan on Monday, which will allow it to fully repay customers using up to US$16.5 billion in assets recovered since the once-leading crypto exchange collapsed.
The U.S. Supreme Court on Monday rejected an appeal from Martin Shkreli, who was once dubbed 'Pharma Bro' after jacking up the price of a lifesaving drug.
Gerontologist Jay Olshansky is used to backlash about his views on human longevity. Decades ago he and his coauthors predicted children, on average, would live to only age 85 — only 1 per cent to 5 per cent might survive until their 100th birthday.
'Eat more vegetables,' doctors and dietitians say over and over. But for many people, it’s hard to do, because they aren’t excited about veggies or just don’t like them.
Travelling on a budget can be stressful, but there are ways you can ensure you're getting the best deal on flights as the holiday season approaches.
The NCAA Division I Council is considering making a landmark change in eligibility rules this week that would allow Canadian Hockey League players to compete at U.S. colleges, the American Hockey Coaches Association executive director said Monday.
Max Pacioretty has a new home. The Toronto Maple Leafs signed the veteran forward to a one-year contract Monday after he made the team out of training camp on a professional tryout.
Shams Charania has been hired as ESPN's senior NBA insider, replacing his mentor Adrian Wojnarowski.
New data from the Insurance Bureau of Canada (IBC) shows that even though claims for auto theft dropped in the first half of 2024 compared to their 2023 peak, the rates of reported theft remain well above those of years prior.
Tesla is recalling more than 27,000 Cybertrucks because the rearview camera image may not activate immediately after shifting into reverse, the fifth recall for the vehicle since it went on sale late last year.
A Pickering, Ont., student going to college to be a mechanic is shocked the engine in his two-year-old car will not be repaired under warranty after the dealership claimed he had been 'over-revving' the engine.
A unique form of clouds made an appearance over the skies of Ottawa on Sunday evening.
Bernie Hicks, known as the ‘Batman of Amherst,’ always wanted to sit in a Batmobile until a kind stranger made it happen.
Bubi’s Awesome Eats, located on University Ave West took to social media to announce the closure on Friday.
Weeneebayko Area Health Authority and the Government of Ontario have awarded a $1.8 billion fixed-price contract to design, build and finance a new Far North hospital.
Manitobans are in cleanup mode after intense winds barreled through southern parts of the province this weekend.
Avry Wortman, 13, scored two touchdowns on Sunday during her team's win in the under 14 Greater Moncton Football Association.
A gargantuan gourd – affectionately named ‘Orangina’ by the urban gardeners who grew it in the front yard of their Vancouver home – earned the massive honour of being named B.C.’s heaviest giant pumpkin Saturday.
Chantal Kreviazuk is set to return to Winnipeg to mark a major milestone in her illustrious musical career.
From the beaches of Cannes to the bustling streets of New York City, a new film by a trio of Manitoba directors has toured the international film festival circuit to much pomp and circumstance.
The man accused of stealing a Vancouver police cruiser and taking it for a joyride in a public park over the weekend has been criminally charged, authorities announced Monday.
A driver who crashed into a Surrey bus stop, killing one man sitting on a bench, was likely impaired by drugs, according to an update from police Monday.
The Squamish Nation has implemented a ban prohibiting the sale, use and possession of fireworks on reserve land.
Toronto’s Jewish community is coming together to mourn and is calling for allyship as it marks one year since the Oct. 7 terrorist attacks on Israel that triggered a war that is still raging on.
Two people are in hospital after they were chased and shot at in what appears to be an act of road rage before eventually flipping their car while trying to escape, police say.
Toronto Coun. Michael Thompson 'forced himself on' a woman who awoke to find him standing over her after she fell asleep drunk, the Crown alleged Monday, as the five-day sexual assault trial of the six-term politician began in Bracebridge, Ont.
Less than 48 hours after his Monterey Park townhome was gutted by a fiery explosion, Calgarian Owen DeFoe returned on Monday to see what was left.
A 17-year-old boy was killed in a motorcycle crash in southeast Calgary over the weekend.
A Lethbridge police officer involved in a scandal involving former Lethbridge New Democrat MLA Shannon Phillips has been reprimanded.
The Renfrew County Joint Transportation Consortium (RCJTC) and school bus operators have reached a contract agreement in principle.
The Ottawa Police Service is investigating after a body was found along a road in Barrhaven. Emergency crews responded to a report of a deceased person at approximately 10:15 a.m. Monday in the 3100 block of Greenbank Road, at Strandherd Drive.
An event was held in Ottawa to honour the victims on the anniversary of the worst attack against Jewish people since the Holocaust.
Montreal students and supporters showed their grief and anger at protests and vigils as they marked the anniversary of the current war between Israel and Gaza.
Celine Dion introduced the marquee Dallas Cowboys - Pittsburgh Steelers Sunday Night Football game before getting drenched by orange Gatorade.
McGill University has agreed to drop a legal challenge of its law faculty's right to unionize, bringing an official end to a strike during which law professors walked off the job for more than five weeks this fall.
A Grande Prairie man has been charged with kidnapping after an assault on Sunday.
Provincial ministers testified before the House of Commons on Monday, asking the federal government to pay for the cost of the Jasper wildfire.
He was brought into the fold to presumably play in a Top 6 forward role, but Jeff Skinner might start the Edmonton Oilers' 2024-25 campaign lower down in the National Hockey League team's lineup.
CTV Atlantic meteorologist Kalin Mitchell has details on rain and downpours expected Monday through early Wednesday in the Maritimes, plus an update on Hurricane Milton.
A Canadian soldier who was exposed to toxic chemicals from burn pits while serving in Afghanistan has been awarded full medical compensation for testicular cancer after Veterans Affairs initially denied his claim.
The Nova Scotia RCMP has charged a 28-year-old woman with stunting for driving 109 km/h in a 30 km/h school zone last week.
A disgraced Winnipeg high school football coach convicted of sexual assault and luring will spend 20 years behind bars.
Shared Health said Manitobans could expect longer wait times in emergency departments if a strike among health-care support workers goes ahead Tuesday.
Winnipeg police have arrested two people and are searching for a third in the death of a woman who was last seen in October 2023.
Regina resident Murray Yagelniski says a city-owned tree on his property is the root of the issue behind his basement flooding.
The Saskatchewan NDP says the province's troubled payment and scheduling system for healthcare is only half implemented and has costed taxpayers nearly triple its original price tag so far.
The John Howard Society of Saskatchewan will appear in front of the Supreme Court of Canada on Tuesday challenging a regulation that it says lets correctional workers discipline inmates without sufficient proof.
Communities across Canada, including in Waterloo Region, are marking one year since the Oct. 7 attack that sparked the Israel-Hamas war.
In September, Â鶹´«Ã½ Kitchener reported on Sandvine's deals with autocratic governments, including Egypt, where its tech reportedly helped inject spyware into the devices of government critics.
The penalty hearing for Guelph Police constable Corey McArthur has heard from two character witnesses, both supporting an eventual return to policing for the officer who has admitted to assaulting a teen who was handcuffed to a hospital bed.
Saskatoon’s Prairie Harm Reduction (PHR) says a staff member arrived to work on Thursday morning to find someone at its doorstep, unresponsive from a suspected drug overdose.
A 36-year-old woman accused of sexually assaulting, physically assaulting and threatening residents at a Saskatchewan care home, was not in court when her matters were spoken to Monday afternoon.
Saskatoon mayoral candidate Cynthia Block says the city needs a new deal with Ottawa to keep life affordable.
Ontario Provincial Police are investigating a fatal crash of a side-by-side off-road vehicle east of Parry Sound that killed one and injured another Friday.
For decades, Mississauga First Nation has known that human remains from their land were at the Canadian Museum of History.
The Federation of Northern Ontario Municipalities (FONOM) is the latest organization to call on the Doug Ford government to re-open dialogue with an airline service that transports lower-income Canadians to crucial medical care far from home.
London police are investigating a break and enter and shooting incident that happened this past weekend and are looking for the two suspects involved.
Emotions have boiled over after a judge acquitted two out of three defendants in a manslaughter case, while the third accused has since died
The London Knights have just become instant favourites for another Ontario Hockey League (OHL) championship.
One person was taken to the hospital with what police describe as minor injuries after a loose wheel caused a collision on Highway 400 in Bradford on Monday.
The cause of a fire that caused significant damage to a home in Oro-Medonte over the weekend is under investigation.
One person suffered serious injuries in a collision in Caledon Monday afternoon.
Chrysler’s parent company, Stellantis, has filed nine lawsuits against the United Auto Workers (UAW) and 23 individual local units, saying the union violated its contract by threatening to strike over the company’s future plans.
The Ambassador Bridge border crossing was 'temporarily closed' for a period of time, according to the Canada Border Services Agency website.
On Oct. 7, 2023, Hamas-led militants launched air and ground attacks on Israel, killing nearly 1,200 and taking more than 250 hostages.
Major crime investigators have been called to the scene of a suspected homicide in the northern Vancouver Island community of Port Hardy.
The day after a minivan was set ablaze outside Vancouver City Hall, a 78-year-old man has been criminally charged.
A Canadian soldier who was exposed to toxic chemicals from burn pits while serving in Afghanistan has been awarded full medical compensation for testicular cancer after Veterans Affairs initially denied his claim.
Nearly two years after a man was stabbed to death in downtown Kelowna, RCMP have made an arrest in the case.
NDP Leader David Eby is promising to offer a $75-million loan forgiveness program to entice doctors, nurses and heath professionals to expand health-care services in rural British Columbia.
Three young suspects have been arrested in connection with a swarming attack on a teenager in B.C.'s Okanagan last week – and authorities have asked the public to stop circulating disturbing videos of the incident.
A Lethbridge police officer involved in a scandal involving former Lethbridge New Democrat MLA Shannon Phillips has been reprimanded.
Lethbridge police say a man who escaped from a psychiatric ward at the Chinook Regional Hospital has been found.
While the summer may be over, construction season in Lethbridge is not.
The Federation of Northern Ontario Municipalities (FONOM) is the latest organization to call on the Doug Ford government to re-open dialogue with an airline service that transports lower-income Canadians to crucial medical care far from home.
For decades, Mississauga First Nation has known that human remains from their land were at the Canadian Museum of History.
Greater Sudbury in partnership with the Organization for Economic Co-operation and Development, is hosting the organization's annual mining conference.
As millions in federal funding flow into a Labrador group whose claims of Inuit identity have been rejected by Indigenous organizations across Canada, a national Inuit leader worries the Liberal government is putting the rights of Indigenous Peoples at risk.
He may not have logged the fastest time or even gone the full distance, but residents of a Newfoundland town agree the goat who unexpectedly joined the local weekend half marathon was the event's undisputed champion.
A mother in a community where the cost of living is one of the highest in the country says grocery prices are 'inhumane' and retailers are putting profits ahead of people’s basic human right to food.
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