Shares in Spirit Airlines and JetBlue Airways (NASDAQ:JBLU) were on the front foot in early Monday trades after filing an appeal against the ruling of US District Judge William Young, who last week blocked their proposed $3.8 billion merger.
Young’s ruling was due to concerns that the merger would violate US antitrust laws, potentially leading to higher prices and fewer options for consumers.
The merger, which involves the sixth and seventh-largest US airlines, was seen as a strategic move by both carriers.
However, Judge Young contended that “if JetBlue were permitted to gobble up Spirit… it would eliminate one of the airline industry’s few primary competitors that provides unique innovation and price discipline”.
“It would further consolidate an oligopoly by immediately doubling JetBlue’s stakeholder size in the industry,” he added.
In response, Spirit Airlines said that it “continues to believe that a combination with JetBlue is the best opportunity to increase much-needed competition and choice by bringing low fares and great service”.
Shareholders, buoyed by optimism for the deal’s future, sent Spirit shares 6.5% higher to $7.46 and JetBlue shares 1.4% higher to $5.06.