Frontier Airlines is making a second attempt to merge with bankrupt Spirit Airlines, which filed for bankruptcy late last year amidst struggles faced by budget airlines. The parent company of Frontier Airlines, Frontier Group Holdings Inc., announced on Wednesday a proposed deal involving newly issued Frontier debt and common stock.
Spirit Airlines has not yet responded to the request for comment regarding the proposed merger. Frontier had previously tried to merge with Spirit in 2022 but was outbid by JetBlue. However, the Justice Department intervened, suing to block the $3.8 billion JetBlue deal, citing concerns about potential price increases for Spirit customers reliant on low fares. A federal judge ruled in favor of the Justice Department in January, leading JetBlue and Spirit to abandon their merger bid two months later.
