Spirit Airlines Rejects Frontier's $2.1 Billion Merger Proposal

The bankrupt budget airline plans to stick with its restructuring plan, citing Frontier's offer as financially insufficient and poorly timed.

Spirit Airlines has declined Frontier Airlines' second merger proposal, valued at $2.1 billion, citing insufficient financial terms and concerns over regulatory and court approvals.
The proposed deal included $400 million in new debt, 19% equity in Frontier, and required Spirit stakeholders to raise $350 million in funding, which Spirit's board deemed unacceptable.
Spirit has been operating under Chapter 11 bankruptcy since November 2024 and aims to emerge from bankruptcy during the first quarter of 2025, with a key court hearing set for February 13.
Frontier's offer followed a failed 2022 merger attempt and Spirit's subsequent $3.8 billion deal with JetBlue, which was blocked by regulators in 2024 over antitrust concerns.
Both airlines have struggled post-pandemic, with Spirit implementing cost-cutting measures, including job cuts and asset sales, as it seeks financial stability.