JetBlue Says JetBlue’s Merger Will Substantially Harm Consumers

August 24, 2023 Press Release

Washington, D.C. — Newly released internal documents from JetBlue Airways document JetBlue’s plan to hike fares by up to 40% on Spirit Airlines flights if the proposed merger between the airlines is approved. In response, the American Economic Liberties Project issued the following statement.

“It brings us no great pleasure to say ‘we told you so,’ but those of us who have been warning that a JetBlue-Spirit merger would raise fares and stifle competition can now cite an unimpeachable source — JetBlue itself,” said William J. McGee, Senior Fellow for Aviation and Travel at the American Economic Liberties Project. “JetBlue’s claims that this deal will benefit consumers are hollow and contradicted by JetBlue’s own internal schemes. When executives testify this October, we hope Judge Young takes notice.”

Earlier this year the US Departments of Justice and Transportation publicly opposed this merger, with the DOJ filing suit to block the proposed deal on the grounds it would “lead to higher fares and fewer choices for tens of millions of travelers.” In March, Economic Liberties warned this was a “blatantly anticompetitive deal” that would harm consumers, employees, and entire communities, and further stated it would “drive up fare prices in every single one of the 80 destinations that Spirit currently serves, and also increase average airfares nationwide.”

According to media reports, among the redacted statements that have come to light, JetBlue asserted it “plans to increase fares on aircraft it acquires from Spirit by at least 24%.” Furthermore, this “is a conservative estimate, and that fare increases may be as high as 40%.”

Learn more about Economic Liberties here.

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The American Economic Liberties Project works to ensure America’s system of commerce is structured to advance, rather than undermine, economic liberty, fair commerce, and a secure, inclusive democracy. Economic Liberties believes true economic liberty means entrepreneurs and businesses large and small succeed on the merits of their ideas and hard work; commerce empowers consumers, workers, farmers, and engineers instead of subjecting them to discrimination and abuse from financiers and monopolists; foreign trade arrangements support domestic security and democracy; and wealth is broadly distributed to support equitable political power.