Frontier Airlines Eyes Spirit Airlines Amid Bankruptcy Talks

Investing.com– Frontier Airlines (NASDAQ:ULCC) is considering a renewed bid for peer Spirit Airlines Inc (NYSE:SAVE), according to a report by the Wall Street Journal.

Ongoing Discussions

The two airlines are in discussions regarding a potential takeover, although no definitive agreement has been reached. Any deal may occur alongside Spirit’s potential bankruptcy filing.

Financial Struggles

Spirit Airlines has extended its deadline to refinance $1.1 billion in debt, which is due by the end of the year, as it faces financial challenges.

Historical Context

Frontier and Spirit have had ongoing merger discussions since 2016. A $2.9 billion deal in 2022 was disrupted by a competing offer from JetBlue Airways Corp (NASDAQ:JBLU), which ultimately won a bidding war. However, the JetBlue-Spirit merger was blocked by the U.S. government due to concerns over competition.

Current Challenges

Frontier is also dealing with a strike involving over 2,000 pilots, who are demanding better pay and benefits.