Spirit Airlines, Inc. SAVE shares are trading lower Wednesday on continued downward momentum after a federal judge blocked JetBlue Airways Corporation JBLU from acquiring the company.
What To Know:
On Tuesday, U.S. District Judge William Young in Boston ruled in favor of the Justice Department and blocked the proposed $3.8 billion purchase of Spirit Airline.
“The consumers that rely on Spirit’s unique, low-price model would likely be harmed,” Judge Young said in his ruling.
President Biden praised the ruling to thwart the merger which would have created the fifth-largest airline in the U.S.
“Capitalism without competition isn’t capitalism – it’s exploitation,” said Biden, according to a report from The Hill. “Today’s ruling is a victory for consumers everywhere who want lower prices and more choices. My administration will continue to fight to protect consumers and enforce our antitrust laws.”
Spirit Airlines shares have fallen more than 60% since the merger was blocked on Tuesday.
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SAVE Price Action: According to Benzinga Pro, Spirit Airlines shares are down 23% on heavy trading volume at $6.10 and JetBlue shares are down 8.5% at $4.69 at the time of publication.
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