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2mo ago

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.

FILE -Spirit Airlines planes parked at the closed George Bush Intercontinental Airport, Jan. 21, 2025, in Houston. (AP Photo/David J. Phillip, File)
FORT LAUDERDALE, FLORIDA - MAY 16: A Frontier Airlines plane near a Spirit Airlines plane at the Fort Lauderdale-Hollywood International Airport on May 16, 2022 in Fort Lauderdale, Florida. JetBlue announced it is taking a hostile position in its effort to acquire Spirit Airlines. Spirit previously rejected a takeover offer from JetBlue, favoring an earlier deal to merge with Frontier airlines. (Photo by Joe Raedle/Getty Images)
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Overview

  • 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.