JetBlue Airways and Spirit Airlines have filed an appeal against a US judge blocking their planned $3.8 billion merger.
They filed with the US Court of Appeals late on Friday to contest a ruling made by a federal judge in Boston.
A two-page appeal notified the court that the two airlines would be going forward with their efforts to combine and form the fifth largest airline in the US.
The carriers had previously signalled they disagreed with the decision to block their merger.
“We continue to believe that our combination is the best opportunity to increase much needed competition and choice by bringing low fares and great service to more customers in more markets while enhancing our ability to compete with the dominant U.S. carriers,” the two airlines said following last week’s decision.
District judge William Young had agreed with the US Department of Justice that the deal agreed last summer was anti-competitive and would harm passengers.
He said in his ruling: “If JetBlue were permitted to gobble up Spirit – at least as proposed – it would eliminate one of the airline industry’s few primary competitors that provides unique innovation and price discipline.
“It would further consolidate an oligopoly by immediately doubling JetBlue’s stakeholder size in the industry.”
But Spirit has stated that it disagrees with the ruling and “continues to believe that a combination with JetBlue is the best opportunity to increase much needed competition and choice by bringing low fares and great service”.
The Florida-based ultra low cost carrier said in an investor update on Friday that it took several steps in the fourth quarter of 2023 “to shore up its liquidity to allow it time to make the necessary strategic shifts to enable the company to compete effectively in the current demand backdrop and to return the business to profitability”.
The airline said that total revenue for the three months was expected to be at the high end of its initial guidance due to strong bookings for the peak Christmas and new year travel period.
Spirit also completed the sale and leaseback of 25 aircraft to bring in a total os $419 million.
The airline is also negotiating “fair compensation” with Pratt & Whitney for aircraft being grounded due to an issue with its engines.
JetBlue is due to issue results for the fourth quarter of 2023 on January 30 and Spirit on February 8.