JetBlue becomes the fifth-largest airline after purchasing Spirit Airlines for $3.8 billion.
On Thursday, the agreement was announced following Frontier Airlines’ attempt to acquire Spirit. JetBlue and Frontier were in a month-long battle to purchase the low-cost carrier. Frontier’s offer to Spirit was worth more than $2.6 billion in cash and stocks. However, the company still fell short of JetBlue’s all-cash offer.
We’re proud to announce JetBlue & @SpiritAirlines will come together to create a bigger, better JetBlue. After closing, we will offer 1700+ daily flights to 125+ destinations—and the low fares and award-winning service you know and love. Learn more: https://t.co/K0uz5rX3A1 pic.twitter.com/CjKzkhLJXO
— JetBlue (@JetBlue) July 28, 2022
“We believe we can uniquely be a solution to the lack of competition in the U.S. airline industry. And the continued dominance of the Big Four,” JetBlue CEO Robin Hayes said in a statement. “By enabling JetBlue to grow faster, we can go head-to-head with the legacies in more places to lower fares and improve service for everyone.”
The combined carrier will include 458 aircrafts, adding 1,700 daily flights to more than 125 destinations in 30 countries. Once the transaction is final, JetBlue is expected to see $600-$700 million in annual savings. Based on the 2019 revenues, the combined company anticipates roughly $11.9 million in annual revenues.
Nevertheless, the deal isn’t complete just yet. The agreement needs the required regulatory approvals and approval from Spirit’s stockholders. The companies are expected to end the regulatory process to close the transaction no later than the first half of 2024.
