© Reuters. FILE PHOTO: A Spirit commercial airliner prepares to land at San Diego International Airport in San Diego, California, U.S., January 18, 2024. REUTERS/Mike Blake/File Photo
(Reuters) -JetBlue Airways disclosed on Friday that it had informed Spirit Airlines (NYSE:) that certain conditions required as part of their merger agreement may not be met before the due date, potentially leading to a termination of the deal.
Shares of Spirit fell about 17% in morning trading; JetBlue shares were up 1.3%.
The airline also informed Spirit that the merger agreement may be terminated on and after Jan. 28 due to the unmet conditions.
Earlier this month, a U.S. judge blocked the airline’s planned $3.8 billion merger with rive JetBlue.
The ruling by a U.S. District Judge William Young found the proposed deal between the two carriers was potentially threatening to competition in the U.S. aviation market and could harm ticket prices.
If the deal went through, it would have created the fifth-largest carrier in the U.S. and helped Spirit secure its survival.
JetBlue continues to evaluate options under the agreement and unless the agreement is terminated, the airline will abide with its merger obligations, the company said in a regulatory filing.
Spirit Airlines did not immediately respond to a request for comment.