Spirit Airways shares sink after decide blocks JetBlue merger

Shares of Spirit Airlines fell about 23% Wednesday, its second day of double-digit losses, after a decide blocked its proposed merger with JetBlue Airways.

Spirit is down roughly 60% because the determination blocking its $3.8 billion acquisition by JetBlue was handed down Tuesday, citing lowered competitors. The mix would have created the nation’s fifth-largest airline.

“JetBlue plans to convert Spirit’s planes to the JetBlue layout and charge JetBlue’s higher average fares to its customers,” U.S. District Court docket Decide William Younger wrote in his determination. “The elimination of Spirit would harm cost-conscious travelers who rely on Spirit’s low fares.”

Spirit inventory was buying and selling simply over $6 a share Wednesday. Wall Avenue analysts on common have a worth goal for the inventory of $14 and a maintain score, in accordance with FactSet.

The airline earlier Wednesday traded at an all-time low, sinking to $5.74 per share. It is down greater than 90% from its report excessive of $84.47, reached in December 2014.

Shares of JetBlue fell about 8% Wednesday and are down about 3% because the decide blocked the merger.

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