JetBlue-Spirit antitrust trial wraps with all outcomes on the table; focus turns to Alaska-Hawaiian merger
The antitrust trial between JetBlue and Spirit finished on Tuesday, with closing arguments from the Department of Justice and lawyers for the airlines marking the end of a monthlong trial that will decide the future of the two airlines — and potentially impact the broader U.S. airline market.
Closing arguments from both teams largely followed the same narratives that were laid out starting with opening arguments on Oct. 31. The DOJ has argued that the merger will hurt the most price-sensitive consumers, with Spirit's elimination from the market on some routes causing prices to rise.
Lawyers for JetBlue, on the other hand, have said that by absorbing Spirit, it could double its size and compete more effectively with the four major U.S. airlines — American Airlines, Delta Air Lines, Southwest Airlines and United Airlines — that together control about 80% of the U.S. air travel market.
The ultimate question at the heart of the trial boiled down to whether the risk of raising the lowest fares on some routes through Spirit's exit would be worth the potential to lower the average airfare across the broader market by putting more pressure on the major carriers.
JetBlue and Spirit have argued that if Spirit were to no longer exist, other ultra-low-cost carriers — such as Frontier, Allegiant, Avelo and Breeze, among others — would fill the void. The airlines plan to divest some of Spirit's holdings in certain markets (like Boston, New York and Fort Lauderdale), giving gates and slots to other ULCCs to preserve competition.
Related: Spirit saw Northeast Alliance as biggest threat to JetBlue merger, testimony reveals
The DOJ, however, has argued that despite testimony from officials at some of those other ULCCs, it's unlikely that they would seek to cover the former Spirit routes at least in the next few years, given differences in business models. For instance, Allegiant primarily flies on routes where there is no other nonstop competition, while Spirit will compete directly with legacy airlines on popular routes like New York to Miami.
There were repeated references on Tuesday to a JetBlue analysis that found the airline commanded a 30% premium on fares compared to Spirit. The DOJ has said that this is evidence JetBlue plans to raise fares; JetBlue officials have said that it was a hypothetical analysis when planning how to value Spirit for its bid, which did not reflect real-world conditions.
Throughout the closing arguments and during the rest of the trial, Judge William G. Young asked clarifying questions of attorneys for both sides. However, he cautioned that some of his queries were hypothetical and should not be taken as a suggestion of how he would rule.
During the arguments on Tuesday, Young asked both sides whether they thought it would be appropriate to rule in a way that would conditionally allow the merger, contingent on the airlines meeting several requirements, such as further divestitures.
Ryan Shores, an attorney for JetBlue, said that if the judge saw that as a viable path forward, it would be a satisfactory solution. Justice Department lawyer Edward Duffy said that a total injunction was the only way to prevent consumer harm. When the judge asked whether that would be too restrictive and if that would block a potential future merger if the market changed, Duffy replied that any future deal would be a different case.
"We're not going to get anywhere if you win, I enjoin this merger, and Spirit goes belly up," Young said, citing testimony that claimed that the financial difficulties Spirit has faced in recent quarters amount to an existential threat to the airline.
The government sued in March to stop the merger that the two airlines agreed to in 2022 after JetBlue made an unsolicited bid, blocking a similar effort by Frontier to acquire Spirit.
While the DOJ has challenged previous mergers between airlines, many of those were settled. A series of bankruptcies and industry consolidations that led to the current dynamic with four major U.S. airlines — many of which were ultimately allowed by the DOJ — has created a playing field where smaller entrants must merge to survive and prosper, Shores said.
"The simple fact and economic reality is that scale matters in this industry," Shores said. "Where we sit today, it's very difficult for small airlines to compete."
Shores raised the pending merger of Alaska Airlines and Hawaiian Airlines, just announced on Sunday, as another example of this dynamic.
The DOJ won a similar antitrust case earlier this year against JetBlue's Northeast Alliance with American Airlines. That case involved one of the four major U.S. airlines and occurred while the Spirit merger was on the table.
Related: JetBlue once planned to buy Alaska Airlines, court testimony reveals
Attorneys for JetBlue cited some arguments made by the DOJ during that previous trial, in which the government argued that JetBlue was a unique and powerful competitor.
"In total, competition between JetBlue and the legacy airlines has saved travelers billions of dollars," one of the statements read.
"High quality of service allowed it to compete effectively against legacy airlines in ways other LCCs/ULCCs could not," read another. "For more than 2 decades, JetBlue served as legacy airlines' foil in the northeastern US."
The big question now is when a decision will be issued by Young — there is no jury for the trial. Young, who was first appointed to the federal bench by then-President Ronald Reagan in 1984, had previously signaled that a ruling was possible before the end of the year. However, it was unclear whether he still saw that timeline as viable.
The $3.8 billion acquisition would see JetBlue pay $33.50 per share of Spirit, which has drawn notable interest from investors. Spirit's stock closed Tuesday at $13.67, down for the day but up from a one-year low of $8.78 in November.
Related reading:
- When is the best time to book flights for the cheapest airfare?
- The best airline credit cards
- What exactly are airline miles, anyway?
- 6 real-life strategies you can use when your flight is canceled or delayed
- Maximize your airfare: The best credit cards for booking flights
- The best credit cards to reach elite status
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 3X | Earn 3X Miles on Delta purchases. |
| 1X | Earn 1X Miles on all other eligible purchases. |
Pros
- Delta SkyClub access when flying Delta
- Annual companion ticket for travel on Delta (upon renewal)
- Ability to earn MQDs through spending
- Various statement credits for eligible purchases
Cons
- Steep annual fee of $650
- Other Delta cobranded cards offer superior earning categories
- Earn 100,000 Bonus Miles after you spend $6,000 or more in purchases with your new Card within the first 6 months of Card Membership and an additional 25,000 bonus miles after you make an additional $3,000 in purchases on the Card within your first 6 months, starting from the date that your account is opened. Offer Ends 04/01/2026.
- Delta SkyMiles® Reserve American Express Card Members receive 15 Visits per Medallion® Year to the Delta Sky Club® when flying Delta and can unlock an unlimited number of Visits after spending $75,000 in purchases on your Card in a calendar year. Plus, you’ll receive four One-Time Guest Passes each Medallion Year so you can share the experience with family and friends when traveling Delta together.
- Enjoy complimentary access to The Centurion® Lounge in the U.S. and select international locations (as set forth on the Centurion Lounge Website), Sidecar by The Centurion® Lounge in the U.S. (see the Centurion Lounge Website for more information on Sidecar by The Centurion® Lounge availability), and Escape Lounges when flying on a Delta flight booked with the Delta SkyMiles® Reserve American Express Card. § To access Sidecar by The Centurion® Lounge, Card Members must arrive within 90 minutes of their departing flight (including layovers). To access The Centurion® Lounge, Card Members must arrive within 3 hours of their departing flight. Effective July 8, 2026, during a layover, Card Members must arrive within 5 hours of the connecting flight.
- Receive $2,500 Medallion® Qualification Dollars with MQD Headstart each Medallion Qualification Year and earn $1 MQD for each $10 in purchases on your Delta SkyMiles® Reserve American Express Card with MQD Boost to get closer to Status next Medallion Year.
- Enjoy a Companion Certificate on a Delta First, Delta Comfort, or Delta Main round-trip flight to select destinations each year after renewal of your Card. The Companion Certificate requires payment of government-imposed taxes and fees of between $22 and $250 (for itineraries with up to four flight segments). Baggage charges and other restrictions apply. Delta Basic experiences are not eligible for this benefit.
- $240 Resy Credit: When you use your Delta SkyMiles® Reserve American Express Card for eligible purchases with U.S. Resy restaurants, you can earn up to $20 each month in statement credits. Enrollment required.
- $120 Rideshare Credit: Earn up to $10 back in statement credits each month after you use your Delta SkyMiles® Reserve American Express Card to pay for U.S. rideshare purchases with select providers. Enrollment required.
- Delta SkyMiles® Reserve American Express Card Members get 15% off when using miles to book Award Travel on Delta flights through delta.com and the Fly Delta app. Discount not applicable to partner-operated flights or to taxes and fees.
- With your Delta SkyMiles® Reserve American Express Card, receive upgrade priority over others with the same Medallion tier, product and fare experience purchased, and Million Miler milestone when you fly with Delta.
- Earn 3X Miles on Delta purchases and earn 1X Miles on all other eligible purchases.
- No Foreign Transaction Fees. Enjoy international travel without additional fees on purchases made abroad.
- $650 Annual Fee.
- Apply with confidence. Know if you're approved for a Card with no impact to your credit score. If you're approved and you choose to accept this Card, your credit score may be impacted.
- Terms Apply.
- See Rates & Fees