JetBlue Airways is ending its quest to purchase Spirit Airways greater than a month after a federal choose blocked the $3.8 billion deal due to antitrust issues.

The carriers agreed to scrap the merger after figuring out they have been unlikely to safe the obligatory authorized and regulatory approvals in time proceed with the deal, JetBlue introduced on Monday. It should pay Spirit $69 million to resolve any remaining issues associated to their failed merger. 

“Given the hurdles to closing that stay, we determined collectively that each airways’ pursuits are higher served by transferring ahead independently,” JetBlue CEO Joanna Geraghty stated in an announcement.

Confirming the event in a separate information launch, Spirit CEO Ted Christie stated the airline continues to be “assured in our future as a profitable impartial airline.” 

Shares of JetBlue edged increased in early Monday buying and selling whereas Spirit shares plummeted almost 14%. 

The deal has been thought of dicey after a federal choose in January dominated that JetBlue’s buy of Spirit would weaken competitors by eliminating a significant low cost airline, doubtlessly leading to increased airfares for vacationers. In siding with the Biden administration in opposing the proposed takeover, Decide William Younger discovered the deal would “hurt cost-conscious vacationers who depend on Spirit’s low fares.” 

JetBlue and Spirit had argued their union would let the merger provider supply low-cost fares in additional markets across the nation and assist it compete with bigger airways. 

The airways agreed to a deal in July 2022 after JetBlue made an unsolicited supply for Spirit, weeks after it struck a take care of competing finances provider Frontier.