JetBlue is buying Spirit for $3.8 billion after bidding war

By DAVID KOENIG and MICHELLE CHAPMAN
AP Business Writers

JetBlue Airways is buying Spirit Airlines for $3.8 billion in a deal that could increase competition at the top end of the U.S. airline industry while eliminating the largest discount airline for travelers on a tight budget. The agreement announced Thursday capped bidding war that began in April, and it came one day after Spirit’s attempt to merge with rival discount carrier Frontier Airlines fell apart. JetBlue and Spirit would become the fifth-largest U.S. carrier. The only major obstacle remaining is the U.S. Justice Department. Antitrust regulators in the Biden administration have been critical of mergers, which they believe hurt consumers by limiting competition. The Justice Department sued to block a partnership between JetBlue and American Airlines.