JetBlue terminates merger with Spirit Airlines

(NBC, KYMA/KECY) - JetBlue has announced it is terminating its merger agreement with Spirit Airlines. The airline made the announcement Monday morning.

A federal judge blocked the proposed merger in January after the Justice Department sued to stop the merger, alleging it would drive up fares for some of the most price-sensitive consumers.

The airlines issued a joint statement following that ruling writing:

"We disagree with the U.S. District Court's ruling. We continue to believe that our combination is the best opportunity to increase much needed competition and choice by bringing low fares and great service to more customers in more markets while enhancing our ability to compete with the dominant U.S. carriers."

The airlines did file an appeal, but Jetblue noted the appeal was a requirement of the merger agreement. Some industry analysts have said there is little change that an appeal would succeed in this case.

JetBlue's proposed $3.8 billion purchase of Spirit would have created the country's fifth-largest airline.