Frontier Airlines Offers New Merger Proposal to Spirit Airlines
Frontier Group Holdings Inc., parent company of Frontier Airlines, has proposed a second merger attempt with Spirit Airlines, which filed for Chapter 11 bankruptcy in November 2022.
The merger plan involves issuing new Frontier debt and common stock, according to a Wednesday announcement. A previous merger attempt in 2022 was unsuccessful after JetBlue outbid Frontier.
However, JetBlue's subsequent merger deal with Spirit was blocked by the Justice Department and a federal judge in January, raising concerns about price increases for budget-conscious Spirit customers.
Spirit's bankruptcy filing came after facing significant financial losses exceeding $2.5 billion since 2020. The airline is also burdened with over $1 billion in looming debt payments in 2025 and 2026.
Frontier Group Holdings Inc.'s stock experienced a slight rise before the market opening on Tuesday, indicating investor interest in the proposed merger.