If you like flying with the two companies who ranked last in The Wall Street Journal’s annual ranking of U.S. airlines last year, then you’ll be happy to know they are now merging together. JetBlue is buying Spirit in a $3.8 billion deal announced today, just hours after Spirit shareholders voted against merging with Frontier airlines for a billion dollars less.
“We are excited to deliver this compelling combination that turbocharges our strategic growth, enabling JetBlue to bring our unique blend of low fares and exceptional service to more customers, on more routes,” said Robin Hayes, JetBlue’s chief executive officer, in a press release. “We look forward to creating a customer-centric, fifth-largest carrier in the United States. Spirit and JetBlue will continue to advance our shared goal of disrupting the industry to bring down fares from the Big Four airlines. This combination is an exciting opportunity to diversify and expand our network, add jobs and new possibilities for Crewmembers, and expand our platform for profitable growth.”
The merger is still subject to regulatory approval in Washington D.C., but expected to close by early 2024. Both airlines will keep operating independently until the merger is officially closed. Assuming the deal is approved, JetBlue’s fleet will grow to 458 aircraft, flying to more than 125 destinations in 30 countries and giving them a stronger foothold in key markets like Orlando and Fort Lauderdale, where JetBlue will retain a support center.
The Spirit brand would disappear, while the new JetBlue remains headquartered in New York. It would become America’s 5th-largest airline after American, Delta, United and Southwest, who control 80% of the domestic market.
“We are thrilled to unite with JetBlue through our improved agreement to create the most compelling national low-fare challenger to the dominant U.S. carriers, and we look forward to working with JetBlue to complete the transaction,” says Spirit’s president and chief executive officer, Ted Christie. “Bringing our two airlines together will be a game changer, and we are confident that JetBlue will deliver opportunities for our Guests and Team Members with JetBlue’s unique blend of low fares and award-winning service.”
