JetBlue Pulls Out of $3.8 Billion Proposal to Buy Spirit Airlines

JetBlue and Spirit Airlines are ending their proposed $3.8 billion combination after a court ruling blocked their merger.

JetBlue said Monday that even though both companies still believe in the benefits of a combination, they felt they were unlikely to meet the required closing conditions before the July 24 deadline and mutually agreed that terminating the deal was the best decision for both.

The Justice Department sued to block the merger last year, saying it would reduce competition and drive up fares, especially for travelers who depend on low-fare Spirit.

In January, a federal district judge in Boston sided with the government and blocked the deal, saying it violated antitrust law.

The airlines had appealed the ruling. The appeal hearing had been set for June.