JetBlue, Spirit are ending their $3.8B merger

JetBlue Airways announced yesterday that it is scrapping its $3.8 billion merger agreement with Spirit Airlines amid a federal court ruling blocking the deal on antitrust grounds.

According to the Justice Department, the merger would increase airfares as no-frills airline Spirit, which offers very low fares and requires passengers to pay extra for everything (including carry-on bags), would no longer be an independent airline.

JetBlue will pay Spirit $69 million as part of its decision to end the deal.