Spirit Airlines (NYSE:SAVE) is working to convince JetBlue Airways (NASDAQ:JBLU) to appeal a federal judge’s decision to block its $3.8 bllion planned sale to the airline.
Spirit (SAVE) has told JetBlue (JBLU) that the deal contract requires the airline to exhaust all legal remedies to complete the transaction and that they need to appeal the judge’s decision, according to a Reuters report earlier on Friday, which cited people familiar with the matter.
JetBlue (JBLU) hasn’t decided yet if it will pursue an appeal, Reuters said, citing the people familiar. It’s considering the likelihood of winning an appeal and that Spirits’ business has meaningfully deterioated since the deal was originally struck in July 2022.
Spirit (SAVE) and JetBlue (JBLU) issued a joint statement on Tuesday thats the airlines were reviewing the court’s decision and evaluating next steps as part of the legal process.
Shares of Spirit (SAVE) have plunged 53% since the judge blocked the JetBlue (JBLU) deal on Tuesday, though they jumped 22% on Friday after the lows cost carrie issued preliminary estimates for Q4 as part of a business update.
Spirit Airlines (SAVE) on Friday stated that it disagrees with the recent U.S. District Court’s ruling and continues to believe that a combination with JetBlue Airways (JBLU) is the best opportunity to increase much-needed competition and choice by bringing low fares and great service.
CNBC reported on Friday that JetBlue (JBLU) is eliminating several routes in an effort to turn a profit after the Spirit (SAVE) deal was blocked.