Frontier Airlines Proposes Merger to Rescue Bankrupt Spirit Airlines
Frontier Airlines has made a new bid to merge with Spirit Airlines, aiming to save the struggling low-cost carrier from bankruptcy – nearly two years after a previous deal between the two airlines collapsed.
In a statement released Wednesday, Frontier argued that the merger would create a stronger budget airline while providing significant financial value to Spirit’s stakeholders. However, Spirit has already rejected the offer, stating in a regulatory filing that it falls “far short” of shareholder expectations and is worth less than the earlier proposal.
The deal would be funded through newly issued Frontier debt and common stock, with Frontier Chairman Bill Franke emphasizing that a merger would make both airlines more competitive and allow them to expand into new markets.
Spirit and Frontier initially planned to merge in 2022, but the agreement was scrapped when JetBlue made a higher bid. However, a federal judge blocked JetBlue’s takeover of Spirit in 2023, leading to Spirit’s bankruptcy filing in November 2024. The airline has since cut 200 jobs as part of cost-saving measures.
If successful, the merger would create the fifth-largest airline in the U.S., offering low base fares with additional fees for carry-ons and other services. Both airlines have recently announced upgrades to attract more passengers, with Frontier introducing first-class-style seating and Spirit launching its “Go Big” premium bundle, which includes perks like free bags, priority check-in, and wider seats.