Airlines

Spirit and Frontier again close to a merger

Talks between the two American low-cost airlines for a deal by the end of the month have begun. They had already attempted the deal in the past without succeeding

by Mara Monti

17 December 2025

3' min read

Translated by AI

Versione italiana

Key points

The resumption of merger talks
Spirit close to third bankruptcy in a year
Merger numbers, who wins and who loses
The difficulties of US low-cost carriers

3' min read

Translated by AI

Versione italiana

After numerous attempts in the past, the merger between the two American low-cost airlines Spirit Airlines and Frontier Airlines may be close. Talks have restarted after the risks of a third bankruptcy of Spirit within a year. To avoid this umpteenth downfall, Spirit secured a $100 million credit line to extend flight operations over the Christmas period, financing that probably prevented the airline from closing down for good. This risk had been rumoured in the market for days to the extent that competing airlines were preparing to cover the low-cost airline's operations in the event of a stoppage.

The resumption of merger talks

Both carriers have announced that they have resumed merger talks, but currently lack a final agreement, which could come by the end of the month. The two airlines had previously planned a deal in 2022, but the process was blocked by a higher bid from JetBlue. The deal was then blocked in 2024 by the Baiden administration having raised a competition issue and so Spirit remained an independent airline. Frontier did not give up and has since submitted two more bids, both rejected by Spirit Airlines, including the $2.16 billion bid, claiming it was below the terms previously discussed.

Spirit close to third bankruptcy in a year

Spirit Airlines filed for bankruptcy twice in 2025 and could have gone out of business if it had not received a new round of financing, $50 million allocated immediately, while another $50 million is pending pending a revival plan or potential sale. This has allowed the company to continue operations, although it is still in a dire financial situation.

Although Frontier itself is having a difficult time financially, Spirit Airlines is undoubtedly the weaker of the two. Therefore, a possible merger with Frontier could lead to the disappearance of the Spirit Airlines brand and its yellow aircraft.

Merger numbers, who wins and who loses

From Frontier's point of view, the main advantage of a merger is resources, namely aircraft, personnel and airport gates: Spirit Airlines currently operates only 102 aircraft, while Frontier has a fleet of 172 aircraft. If Frontier were to acquire Spirit, it would end up with 279 aircraft, making it comparable in size to JetBlue as the sixth largest airline in the US. Both Spirit and Frontier use exclusively Airbus A320 family aircraft, employing A320neo and A321neo with Pratt & Whitney engines.

For its part, Frontier has a stronger financial position, a slightly better brand and a complementary network more exposed to the western part of the US than Spirit Airlines. However, Frontier's management under former CEO Barry Biffle has always been cautious about a full takeover, fearing that the absorption of Spirit would put a strain on its balance sheet. However, rumours of talks between the two carriers came a day after Frontier announced the departure of its CEO Biffle, who handed over the position on an interim basis to James Dempsey, already part of management.

The difficulties of US low-cost carriers

The dynamics of the US airline industry have changed substantially, to the point where low-cost airlines are at a considerable disadvantage. The creation of a large national low-cost airline could be a more formidable competitor to the traditional US carriers. After the pandemic, US low-cost airlines, unlike their European counterparts, are still suffering as US travellers increasingly prefer airlines with spacious premium cabins, long-haul flight networks, and comprehensive frequent flyer programmes, all of which low-cost airlines are unable to offer.

On a national level, the most successful US airlines are Delta Air Lines, United Airlines and Alaska Airlines, while the others register lower profits or financial losses. For this reason, Frontier conducted a thorough review of its operating and business model in order to increase profits.

One of the problems facing low-cost airlines is their lack of size, which can reduce their relevance in many key markets. This is why, according to analysts, Frontier may need Spirit Airlines to survive in the long run in order to increase its market position and boost demand.