JetBlue to buy Spirit Airlines in $3.8bn deal

Under the terms of the transaction, JetBlue will pay $33.50 per share in cash.

JetBlue chief executive Robin Hayes said: "We are excited to deliver this compelling combination that turbocharges our strategic growth, enabling JetBlue to bring our unique blend of low fares and exceptional service to more customers, on more routes.

"We look forward to welcoming Spirit’s outstanding team members to JetBlue and together creating a customer-centric, fifth-largest carrier in the United States. Spirit and JetBlue will continue to advance our shared goal of disrupting the industry to bring down fares from the Big Four airlines. This combination is an exciting opportunity to diversify and expand our network, add jobs and new possibilities for crew members, and expand our platform for profitable growth."

JetBlue expects to achieve $600m to $700m in net annual synergies once integration is complete, driven in large part by expanded customer offerings resulting from the greater breadth and depth of the combined network.

The combined entity is expected to have annual revenues of around $11.9bn based on 2019 revenues and JetBlue anticipates the deal will be "significantly" accretive to earnings per share in the first full year after closing.