Struggling ultra-low-cost carrier Spirit has engaged in high-level talks with rival Frontier, Bloomberg reported Thursday.
The financial news outlet said Spirit Chairman Robert Milton met earlier this week with Frontier Chair Bill Franke near Spirit’s corporate headquarters in Dania Beach, Florida. The two discussed Spirit’s rebuilding efforts and the general state of the U.S. airline industry, Bloomberg reported. The subject of a possible acquisition did not come up.
The outlet cited an unnamed source with knowledge of the talks.
Neither Spirit nor Frontier have commented publicly on the alleged meeting.
Beyond their status as competitors, the two budget airlines have a history. Frontier attempted to buy Spirit in 2022 in a $2.9 billion cash and stock deal, but Spirit ultimately rejected the offer. The combination would have created the fifth-largest airline in the country.
Frontier made another bid for Spirit earlier this year, though at a reduced price, and Spirit again turned down the proposal. The carrier did say that it would welcome further discussions with Frontier, however.
Growing Uncertainty
Spirit has suffered a string of financial setbacks since emerging from Chapter 11 bankruptcy protection in March. It recorded losses in the first and second quarters of 2025, and earlier this month it warned investors that it may not survive the year as a going concern if it cannot raise more cash. About a week later, rating house Fitch downgraded Spirit’s creditworthiness, and Moody’s did the same after Spirit drew down the entire $275 million it had available through a revolving credit facility set up as part of its bankruptcy restructuring.
The airline has furloughed about 500 pilots and is in the process of selling 23 Airbus A320 and A321 aircraft. It is also looking at selling off real estate and cutting other fixed costs.
In a message to employees, Spirit leadership said they are making the changes necessary to put the carrier back on solid ground and make it the “premium” of budget operators. Spirit now offers larger seating and extra legroom for a fee, and is in the process of rolling out other perks, like the Free Spirit Debit Card. It has also bolstered operations at its hub at Fort Lauderdale–Hollywood International Airport in Florida.
Still, analysts say it’s becoming increasingly difficult to see how Spirit will regain its footing, especially as demand cools after the summer travel season. Some have faulted the airline for failing to make difficult but necessary changes during its bankruptcy period, like renegotiating aircraft leases and scaling back operations.
