Socialist antitrust activists killed Spirit Airlines — and learned nothing

Key Takeaways:

• A court blocked the proposed Spirit-JetBlue merger in early 2024, citing antitrust concerns.
• Spirit Airlines soon shut down, marking the first closure of a major U.S. carrier in 25 years.
• Over 11,000 airline employees lost their jobs as a result.
• Air travelers have fewer low-cost options and are seeing higher fares.
• Critics argue this outcome disproves the notion that bigger mergers always harm consumers.

Antitrust Battles and Spirit’s Fate

Air travel has taken a turn for the worse in recent months, and industry watchers point to more than just global tensions driving up fuel costs. Spirit Airlines, one of America’s most recognizable budget carriers, has become a cautionary tale after shutting its doors entirely. The closure marks the first time in 25 years that a major U.S. airline has vanished from the skies.

Stopping the Merger

Back in early 2024, Spirit hoped to survive ongoing economic turbulence by merging with JetBlue. Both were known as economy carriers, aiming to keep prices accessible for travelers. However, the Department of Justice, supported by officials in six states and the District of Columbia, filed an antitrust lawsuit to block the deal. Citing concerns about potential fare hikes and diminished competitive options, a federal judge sided with the Biden administration and halted the merger.

Political Reactions

After the ruling, prominent Democrats applauded what they viewed as a consumer-friendly decision. Attorney General Merrick Garland hailed it as “a victory for tens of millions of travelers who would have faced higher fares and fewer choices.” Senator Elizabeth Warren chimed in on social media, calling the ruling “a Biden win for flyers.” Transportation Secretary Pete Buttigieg likewise advocated for preventing further airline consolidation, claiming it would promote “low fares” and “competition.”

The Fallout for Spirit Airlines

Without JetBlue’s financial support, Spirit was forced to confront persistent challenges on its own. The airline’s difficulties snowballed, culminating in a bankruptcy filing and ultimate shutdown. More than 11,000 Spirit employees were left jobless, and travelers lost a key budget option that had long exerted downward pressure on fares.

Lessons on Competition

While the Biden administration’s position suggested that blocking the merger would guarantee lower prices, Spirit’s disappearance has had the opposite effect. Consumers face fewer choices at the airport, with larger carriers seemingly ready to fill in the gaps—often at higher costs. Now, some of the same officials who championed antitrust actions against Spirit’s merger are turning their attention to other Trump-era antitrust settlements, yet the outcome of preventing this merger delivers a sobering message: sometimes, stopping a merger can ultimately eliminate the very source of low-cost competition it aimed to protect.