Adverse rulings in either of the lawsuits aimed at preventing the USD3.8 billion merger between JetBlue Airways and Spirit Airlines, or its North East Alliance with American Airlines, could adversely impact its business, financial condition, and results of operations, JetBlue has admitted in its latest quarterly report.

The New York-based carrier is facing two legal challenges to its July 28, 2022, plan to acquire its Florida-based ultra-low-cost rival, in addition to a pending court decision on the NEA with American, the latter being challenged by the United States Department of Justice (DOJ), along with Attorneys-General of six states and the District of Columbia.

In addition, on November 3, 2022, 25 consumers filed suit in the District Court for the Northern District of California against JetBlue and Spirit seeking to enjoin the merger, alleging that it violates the US's anti-trust Clayton Act. The lawsuit also seeks to enjoin the NEA. No trial date has been set.

Citing the same anti-trust legislation, the DOJ, along with the Attorneys-General of two states and the District of Columbia also filed suit in the District Court for the District of Massachusetts on March 7, 2023. On March 31, the Attorneys-Generals of four more states joined the lawsuit. A court date is set for October 16, 2023.

In an apparent orchestrated campaign, employees of JetBlue and Spirit have flooded the US Department of Transportation (DOT) with thousands of comments in support of the airlines' proposed merger.

Of more than 10,000 public comments received, about 90% are from JetBlue and Spirit crew members using the same pre-written statement requesting the DOT’s "prompt review and approval" of the proposed merger.

Other support has come from politicians, including New York State Assembly member Stacey Pheffer Amato and Florida Legislature representatives Taylor Yarkosky and Stan McClain, who – in similar letters of support - have written to US Attorney General Merrick Garland and US Transportation Secretary Pete Buttigieg arguing the merger would create a "highly competitive national low-fare challenger to the Big Four US airlines that together control about 80% of the US market". "A larger JetBlue will introduce a long overdue 5th national competitor […]," Amato appealed.

Meanwhile, the Transport Workers Union of America (TWU), which says 6,800 of its members are flight attendants at JetBlue and about 250 work as customer service agents for Spirit – has lodged an objection with the DOT to the airlines’ joint application to transfer Spirit’s international route authority to JetBlue. “The carriers misapprehend the law and the harsh realities that will be caused by this acquisition,” the TWU argues. Since there was no outcome yet of the Department of Justice’s legal action to prevent the merger, and there was no clarity on what the surviving carrier would look like, there was no way the airlines could assure that the transfer of Spirit’s international routes to JetBlue would provide more competition and be in the public interest. "It is clear that JetBlue’s current acquisition plan does not satisfy the relevant requirements,” the union argues.

The TWU has also dismissed as "sales tactics" the airlines' promises of the proposed merger's benefits to employees. The union states the airlines have made "no enforceable commitments to avoid furloughs, preserve jobs, flight attendant bases, or employment levels for any TWU-represented group at either JetBlue or Spirit". There was also no commitment to profit sharing or to otherwise share the synergies created by the combination. "There is no reason to believe that the transfer of Spirit’s international routes to JetBlue or the underlying acquisition that is the basis of this request will benefit the TWU-represented employees of either carrier or the overall workforce," it said.

In the meantime, in a May 12 notification to the market, JetBlue announced May 24 as the record date for the May 2023 prepayment to Spirit stockholders of USD0.10 per Spirit share with an additional payment on May 31, 2023. This is in line with the merger agreement, which provides that JetBlue makes a monthly payment to Spirit stockholders of USD0.10 per share until the closing date or termination of the merger.