JetBlue Airways planes are seen near Spirit Airlines planes at Fort Lauderdale-Hollywood International Airport in Fort Lauderdale, Florida, on May 16, 2022.
Joe Rydell | Getty Images News | Getty Images
Spirit Airlines shares fell about 23% on Wednesday, the second day of double-digit losses, after a judge blocked its proposed merger with JetBlue Airways.
Spirit's stock has fallen nearly 60% since Tuesday's decision to block JetBlue's $3.8 billion acquisition, citing reduced competition. This combination could have created the country's fifth-largest airline.
“JetBlue plans to convert Spirit aircraft to JetBlue design and charge its customers higher average JetBlue fares,” U.S. District Judge William Young wrote in his decision. “Getting rid of Spirit would hurt cost-conscious travelers who rely on Spirit’s low fares.”
Spirit stock was trading at just over $6 a share on Wednesday. Wall Street analysts on average have a $14 price target for the stock and a hold rating, according to FactSet.
The airline traded earlier Wednesday at an all-time low, falling to $5.74 per share. It is down more than 90% from its record high of $84.47, which was reached in December 2014.
JetBlue shares fell about 8% on Wednesday and have fallen about 3% since a judge blocked the merger.
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