stock tumbled to a nearly 12-year low on Tuesday as the company forecast a loss for the fourth quarter and heads to court to defend its acquisition of budget carrierShares were down 15% in early trading Tuesday to roughly $3.55 apiece. Spirit shares were down about 10%, at a more than three-year low.to block JetBlue’s $3.
The deal would create the fifth-largest airline in the U.S. JetBlue argued it needs to buy Spirit to grow and better compete against giant carriers —The Justice Department, however, alleges that “the proposed transaction will increase fares and reduce choice on routes across the country, raising costs for the flying public and harming cost-conscious fliers most acutely.”The trial starts on Tuesday and is set to last about three weeks in U.S. District Court in Boston.
JetBlue also forecast an adjusted loss for the fourth quarter and the full year, guiding to an adjusted loss of between 35 cents and 55 cents in the last three months of the year. Spirit Airlines, meanwhile, said it will have little if any capacity growth next year as it grapples with slower demand and a headtopics.com
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