© Reuters. Spirit Airlines gains as Jetblue terminates northeast alliance with American Airline
Spirit Airlines (NYSE:) shares gained more than 2% after-hours following the statement issued by JetBlue Airways Corp (NASDAQ:) regarding its Northeast Alliance (NEA) with American Airlines (NASDAQ:).
As a direct result of the NEA, customers enjoyed increased capacity, new routes, lower fares, JetBlue-American flight connections as an alternative to Delta Air Lines Inc (NYSE:) and United Airlines Holdings Inc (NASDAQ:), and enhanced loyalty program benefits. For these reasons, JetBlue strongly disagrees with the court’s ruling against the NEA but has decided not to appeal. Instead, the company initiated the termination process, planning a wind-down over the coming months.
JetBlue’s focus will shift to the proposed combination with Spirit Airlines, which presents the best opportunity to transform the competitive landscape nationwide and expand the JetBlue Effect.