Frontier and Spirit are again in talks over a potential merger, according to a Wall Street Journal report published Tuesday. The two ultra-low-cost carriers (ULCCs) attempted a merger in 2022, which ultimately ended in favor of the failed JetBlue-Spirit tie-up.
Citing sources familiar with the discussions, the WSJ report states that any sort of deal would likely come as part of a bankruptcy filing for Spirit.
The report noted that talks between the two airlines are still at an early stage and a deal may not materialize.
Frontier’s initial $2.9 billion plan to purchase Spirit was outbid by JetBlue. The JetBlue-Spirit deal — valued at $3.8 billion — was later blocked by a federal judge in January 2024.
Spirit continues to face financial woes, including repeated quarterly losses. The carrier reported a net loss of $158 million in the second quarter while also furloughing pilots and deferring aircraft deliveries.
Another WSJ report from early October stated that the carrier is weighing potential bankruptcy. Spirit recently extended a debt refinancing deadline from October 21 to December 23, effectively delaying a bankruptcy filing.
