Frontier makes second bid for Spirit with budget airlines struggling

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Frontier Makes Second Bid For Spirit With Budget Airlines Struggling
Spirit Airlines planes parked at the closed George Bush Intercontinental Airport, © Copyright 2025 The Associated Press. All rights reserved
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By Michelle Chapman. AP

Frontier Airlines is attempting for a second time to merge with Spirit Airlines, which declared bankruptcy late last year as budget airlines struggle.

Frontier Group Holdings, the parent company of Frontier Airlines, said the proposed deal would include newly-issued Frontier debt and common stock.

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Frontier tried to merge with Spirit in 2022 but was outbid by JetBlue.

However, the US Justice Department sued to block the 3.8 billion dollar (£3.05 billion) JetBlue deal, saying it would drive up prices for Spirit customers who depend on low fares, with a federal judge agreeing in January.

JetBlue and Spirit dropped their merger bid two months later.

Spirit filed for bankruptcy protection in November.

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The biggest US budget airline, Spirit filed a Chapter 11 bankruptcy petition after working out terms with bondholders.

The airline has lost more than 2.5 billion dollars (£2 billion) since the start of 2020 and faces looming debt payments totalling more than one billion dollars (£803 million) in 2025 and 2026.

Shares of Frontier Group rose slightly before the opening bell in the US on Tuesday.

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