Federal judge blocks JetBlue-Spirit merger

(NBC, KYMA/KECY) - A federal judge blocked JetBlue Airways' purchase of budget rival Spirit Airlines.

The ruling is a major win for Biden's Justice Department, which sued to stop the merger, alleging it would drive up fares for some of the most price-sensitive consumers.

JetBlue's proposed $3.8 billion purchase of discount carrier Spirit would have produced the country's fifth-largest airline. Spirit's shares plunged after the decision was announced. JetBlue's shares were down about 5% after briefly spiking.

Neither airline immediately commented on the decision.

Spirit had grown rapidly in recent years by offering cheap fares and fees for everything else from seat assignments to carry-on luggage.

JetBlue planned to remodel Spirit's yellow planes to provide more of a full-service model.