Spirit and Frontier Revive Merger Talks Amid Restructuring Pressure
Spirit Aviation Holdings, the parent company of Spirit Airlines, is reportedly back in merger discussions with Frontier Airlines Holdings, renewing efforts to combine the two US ultra-low-cost carriers. People familiar with the matter told Bloomberg that talks are ongoing and that a transaction could be announced as early as this month, although there is no certainty that an agreement will be reached.
If completed, the deal would represent the fourth attempt by Frontier to merge with Spirit, underscoring the persistent strategic logic seen by both sides despite repeated setbacks. The first merger proposal dates back to February 2022, when Frontier moved to acquire Spirit. That effort was quickly eclipsed by JetBlue Airways, which launched a USD33.50-per-share all-cash bid. Spirit ultimately agreed to merge with JetBlue in July 2022, but the transaction was blocked by a federal judge in January 2024 on antitrust grounds, forcing both airlines to abandon the deal.
Following the collapse of the JetBlue merger, Frontier reopened discussions with Spirit in October 2024. Those talks failed to result in an agreement, and Spirit filed for Chapter 11 bankruptcy protection the following month. During that restructuring process, Frontier submitted another offer for Spirit, valuing the carrier at around USD2.2 billion. Spirit rejected the proposal in early 2025, describing it as “inadequate and unactionable.”
Spirit emerged from Chapter 11 in March 2025 with new equity, but its financial stability remained fragile. In late August 2025, the airline entered a renewed restructuring process after a dispute with its largest aircraft lessor, AerCap. Reports indicated that Spirit came close to shutting down over the weekend of December 13–14, before securing USD50 million in emergency debtor-in-possession funding that allowed it to continue operations. On the same day that the financing was disclosed, Bloomberg reported that merger talks with Frontier had resumed.
Meanwhile, Frontier Airlines has undergone leadership changes of its own. The carrier recently replaced long-time chief executive Barry Biffle, appointing James Dempsey as interim CEO, a move that may signal a willingness to reassess strategic options, including consolidation.
Fleet data from ch-aviation shows Frontier operates 173 aircraft, including A320ceo and A320neo family jets, while Spirit has a larger fleet of 214 aircraft. However, Spirit’s fleet is set to shrink significantly as part of its ongoing Chapter 11 process, with agreements in place to return leased aircraft and restructure future deliveries.
A Spirit–Frontier merger would create the largest ultra-low-cost carrier in the US, but regulatory scrutiny remains a major uncertainty, particularly given the recent history of blocked airline consolidation.
Related News: https://airguide.info/category/air-travel-business/airline-finance/
Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com