JetBlue, Spirit Airlines proposed merger is officially off [Video]

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

WASHINGTON — 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.

“We are proud of the work we did with Spirit to lay out a vision to challenge the status quo, but given the hurdles to closing that remain, we decided together that both airlines’ interests are better served by moving forward independently,” JetBlue CEO Joanna Geraghty said in a statement.

“We are disappointed we cannot move forward with …

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