WASHINGTON—United Continental Holdings Inc. has terminated a deal to obtain takeoff-and-landing slots at Newark Liberty International Airport from Delta Air Lines Inc., prompting the Justice Department on Wednesday to drop its antitrust lawsuit challenging the transaction.

The department sued the two airlines last November, claiming United's agreement to acquire 24 slots from Delta would strengthen United's already dominant position at its Newark hub, to the detriment of consumers.

According to court documents filed Wednesday, United ended the slot lease agreement in light of new action by the Federal Aviation Administration to relax controls on slots at Newark.

In light of United's abandonment of the deal, the Justice Department dropped its case.

"The FAA's action opens up Newark to more robust competition and achieves the very outcome we sought in litigation: protecting consumers from United's plan to enlarge its monopoly at Newark," Justice Department antitrust chief Bill Baer said in a statement.

The airlines didn't immediately respond to requests for comment.

Write to Brent Kendall at brent.kendall@wsj.com

(END) Dow Jones Newswires

April 06, 2016 15:15 ET (19:15 GMT)

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