Markets 
Sen. Elizabeth Warren, D-Mass., is under fire after Spirit Airlines abruptly shut down, with critics citing her claim that blocking a merger that could have saved the troubled carrier was “a Biden win for flyers.”
Spirit announced early Saturday it would cease operations immediately, canceling all flights and shutting down customer service, leaving many travelers stranded.
The collapse is reigniting debate over whether federal regulators got it wrong in blocking a proposed JetBlue-Spirit merger, with opponents now arguing the decision may have reduced competition and contributed to the airline’s downfall.
“I’ve warned for months that a @JetBlue-@SpiritAirlines merger would have led to fewer flights and higher fares,” Warren wrote in a March 2024 post on X. “@JusticeATR and @USDOT were right to stand up for consumers and fight against runaway airline consolidation. This is a Biden win for flyers!”
Biden administration officials made similar arguments at the time. Former Attorney General Merrick Garland said in a March 2024 statement: “The Justice Department proved in court that a merger between JetBlue and Spirit would have caused tens of millions of travelers to face higher fares and fewer choices.” He added: “Today’s decision by JetBlue is yet another victory for the Justice Department’s work on behalf of American consumers.”
Then-Assistant Attorney General Jonathan Kanter also framed the ruling as a win for consumers: “Our win in court is a victory for US travelers who deserve lower prices and better choices.”
The US Department of Transportation, led by former Secretary Pete Buttigieg, also backed the decision earlier in the process.
In a 2023 statement, the agency said it “fully supports the Justice Department’s lawsuit… to block the proposed JetBlue-Spirit merger,” arguing the deal would “eliminat[e] the largest, most aggressive ultra-low-cost competitor” and “substantially reduc[e] competition.”
Warren defended her position following Spirit’s collapse in a new post on X.
“Spiking fuel prices from Trump’s war was the nail in the coffin for twice-bankrupted Spirit airline,” she wrote. “FWIW, JetBlue merger failed because a judge, appointed by Ronald Reagan, said the deal was illegal. Republicans are desperate to shift blame from higher costs hitting families.”
Warren’s office pointed to rising fuel costs as a key factor in Spirit’s collapse in an email to FOX Business.
Patrick De Haan, head of petroleum analysis at GasBuddy, wrote on X that Spirit’s restructuring plan had assumed jet fuel costs of about $2.24 per gallon in 2026, but prices had climbed to roughly $4.51 per gallon by the end of April.
A community note on X, which is written by platform users, pushed back on Warren’s claims.
“Senator Warren previously helped block the merger of JetBlue and Spirit which would have resulted in a 5th major airline and more competition against major airlines.”
Transportation Secretary Sean Duffy criticized the earlier decision to block the merger.
“This merger should have been allowed,” Duffy said Saturday. “This is not better for travelers. This is not better for pricing. This is not better for competition… It’s worse. We had an airline go down,” Duffy said.
Spirit’s shutdown has left travelers scrambling, with major airlines capping fares and offering limited relief options for stranded passengers, while displaced workers are being directed to hiring pipelines at competing carriers, as previously reported by FOX Business.
The Justice Department sued to block the JetBlue-Spirit deal under antitrust law, arguing it would eliminate a key low-cost competitor and raise prices on overlapping routes.
A federal judge ultimately agreed, blocking the merger after a multi-week trial.
Spirit had struggled financially for years and had previously filed for bankruptcy as it sought to stabilize its business.
The Trump administration said it explored options to keep Spirit afloat, but a proposed bailout failed to materialize before the airline shut down operations, as FOX Business previously reported, leaving ongoing debate over whether earlier regulatory decisions played a role in its collapse.
Fox News Digital’s Robert McGreevy, Sophia Compton, Michael Sinkewicz and FOX Business’ Matthew Kazin contributed to this reporting.
Read the full article here
