Spirit Airlines Rejects Frontier’s $2.16 Billion Takeover Bid
The bankrupt budget carrier opts to pursue its own restructuring plan after deeming Frontier’s revised offer insufficient.
- Spirit Airlines has rejected Frontier Group’s latest $2.16 billion acquisition proposal, citing unresolved risks and favoring its own reorganization strategy.
- Frontier’s offer included $400 million in debt and a 19% equity stake, but Spirit countered with a proposal seeking $600 million in debt and $1.185 billion in equity, which Frontier declined.
- Spirit filed for bankruptcy protection in November 2024 after incurring over $2.5 billion in losses since 2020 and faces over $1 billion in debt payments due in 2025 and 2026.
- The two airlines have engaged in merger talks since 2022, but previous efforts, including a JetBlue bid, were derailed by regulatory and antitrust concerns.
- Spirit anticipates completing its court-approved restructuring process within the first quarter of 2025.