The JetBlue-Spirit Airlines merger was blocked by a federal judge. Here's what you need to know

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The prospect of a JetBlue-Spirit Airlines merger has taken a major hit in court

NEW YORK — The prospect of a JetBlue-Spirit Airlines merger took a major hit in court on Tuesday when a federal judge sided with the Biden administration and blocked the $3.8 billion deal.

The judge ruled that JetBlue's purchase of Spirit, the nation's largest low-cost airline, would harm competition — and increase prices for air travelers as a result. Meanwhile, JetBlue has maintained that it needs such a deal to compete with industry rivals.

Here's a rundown of what you need to know.

It boils down to competition concerns. The Justice Department and several state attorneys general sued to block the merger last year — arguing that it would drive up fares by eliminating low-cost Spirit. U.S. District Judge William Young agreed.

Young, who was nominated for the federal bench by President Ronald Reagan, ruled that the merger would harm competition and violate antitrust law.

“There are no ‘bad guys’ in this case," the Boston-based judge wrote. «The two corporations are — as they are expected to — seeking to maximize shareholder value. The Department of Justice is — as the law requires — speaking for consumers who otherwise would have no voice.”

With no merger in sight, the status quo for both JetBlue and Spirit remains — meaning air travelers shouldn't expect major changes anytime soon.

But JetBlue and Spirit said they disagreed with the ruling and are considering whether to appeal. JetBlue, the nation’s sixth-largest airline by revenue, argued that it needs the deal to better compete with larger rivals.

The ruling could also open the door for Frontier Airlines to make another attempt to buy Florida-based Spirit. The two budget airlines