Low-cost carriers JetBlue and Spirit agreed to terminate their $3.8 billion merger agreement after facing significant regulatory and legal hurdles. 

On Monday, the airlines issued a joint statement saying that the decision "is the best path forward."

"We are proud of the work we did with Spirit to lay out a vision to challenge the status quo, but given the hurdles to closing that remain, we decided together that both airlines’ interests are better served by moving forward independently," said JetBlue CEO Joanna Geraghty. 

Geraghty, who took over as CEO last month, argued the deal, announced in July 2022, "would have unleashed a national low-fare, high-value competitor to the Big Four airlines." 

In January, a federal judge blocked JetBlue's acquisition of Spirit, agreeing with the Justice Department that the deal would hurt the availability of low-cost air travel tickets.

"We are disappointed we cannot move forward with a deal that would save hundreds of millions for consumers and create a real challenger to the dominant ‘Big 4’ U.S. airlines," said Spirit CEO Ted Christie. "However, we remain confident in our future as a successful independent airline."

This is a developing story. Please check back for updates.