A federal judge blocked JetBlue's $3.8 billion merger with Spirit Airlines over competition and pricing concerns.

The decision puts Spirit Airlines' future in jeopardy due to their current financial struggles and grounded planes.

JetBlue is better equipped to deal with the setback and is planning for expansion.

The blocked merger might benefit JetBlue as Spirit's stock has been on a decline, falling 59% after the merger block.

Spirit Airlines faces high debt levels, leading some analysts to suggest bankruptcy as a potential outcome.

Despite these challenges, Spirit is confident in its business strategy and is taking measures to improve its balance sheet and streamline operations.

The scuttled merger raises concerns about potential bankruptcy or liquidation for Spirit Airlines.