Spirit and Frontier Airlines are once again discussing a potential merger, according to a report from Bloomberg late Tuesday, reopening a long-running saga between the two ultra-low-cost carriers as Spirit fights for survival.
Just last weekend, rumors were swirling that Spirit's collapse could be imminent as it faced a key deadline in bankruptcy court to get an infusion of funding. After flying through the weekend, Spirit secured $100 million in financing to keep the lights on – $50 million available immediately, and another $50 million tied to submitting an approved reorganization plan … or a plan to sell the airline.
It could be the latter.
Citing anonymous “people familiar with the matter,” Bloomberg reported that Spirit and Frontier have resumed talks of a merger. While there's clearly no deal in place yet, the outlet reports that a merger could be announced yet this month … or not at all.
If the news sounds familiar, that’s because it is. Spirit and Frontier have explored merging three times in recent years, with each prior attempt falling apart … and Spirit’s financial position growing weaker by the minute. Spirit is reportedly burning through roughly $3 million per day, meaning the initial cash infusion could last only a couple of weeks.
Adding another wrinkle to the story, Frontier abruptly fired its longtime CEO Barry Biffle on Monday, just before merger talks resurfaced. Biffle led the airline during both prior failed attempts to combine with Spirit and was reportedly skeptical of a full acquisition, citing concerns that absorbing Spirit could strain Frontier’s finances. His departure may signal a reset at Frontier – and a clearer runway for dealmaking this time around.
It may be the budget airline that U.S. travelers love to hate, but Spirit’s predicament would have seemed almost unthinkable just a few years ago.
For much of the 2010s, the airline was among the fastest-growing carriers in the U.S., built on rock-bottom fares, aircraft packed with seats, and relentless expansion across the U.S.
But the airline’s decline accelerated as multiple shocks piled up: pandemic-era debt, rising labor and fuel costs, supply chain disruptions that sidelined aircraft, and a shifting travel market that increasingly favored flying internationally with larger, premium airlines. As travel demand roared back, Spirit struggled to capitalize.
The airline’s history with Frontier dates back to at least early 2022, when the two carriers struck a merger agreement aimed at creating a larger challenger to the Big Four U.S. airlines. That deal unraveled after JetBlue entered the picture with a richer offer – one Spirit chose to chase, to no avail.
Former President Joe Biden's Department of Justice successfully blocked that combination. All the while, Spirit's problems worsened.
In the last year alone, Spirit has filed for bankruptcy twice – the low-cost carrier is currently in its second round of bankruptcy.
Frontier tried again with a proposed merger last year only for Spirit to reject it as inadequate. But with Spirit clearly on the ropes, the odds may have shifted.
Frontier operates a nearly identical ultra-low-cost model … just with less of a reputation problem as Spirit. A merger could allow Spirit’s aircraft, routes, and workforce to survive. And perhaps most importantly, it would create a larger budget carrier – and the fifth-largest airline in the U.S. – that could keep the important price pressure on legacy carriers alive.
Any merger may still face scrutiny from federal regulators, though aviation experts view that as less likely under the current Trump administration.
