JetBlue Observes Spirit's Struggles as Merger Trial Commences
Originally Published 2 years ago — by Cranky Flier
As the trial begins for the Department of Justice's lawsuit to block JetBlue from acquiring Spirit, Spirit's Q3 financial performance reveals staggering losses and declining revenue. The airline attributes the poor results to softer demand and discounted fares in its markets. Spirit's unit revenue plunged 17.4% and actual fare revenue dropped 27.8% year-over-year. Additionally, Spirit's operational performance suffered, with a low on-time arrival rate and a high cancellation rate. The airline is also facing challenges due to Pratt & Whitney engine problems. JetBlue, which plans to acquire Spirit, may be growing anxious about the merger as Spirit's financial and operational woes continue.
