Two of the largest low-cost carriers in the United States are once again discussing the possibility of combining into a single airline.
As it navigates a second bankruptcy restructuring in 2025, Spirit Airlines has resumed talks with Frontier Airlines about a potential merger, according to a recent Bloomberg report.
The two budget airlines first floated the idea of a merger back in 2022, but before that deal could be completed, JetBlue swept in with a competing offer and won approval from Spirit’s shareholders.
The deal between JetBlue and Spirit, however, was ultimately blocked by federal courts in 2024 due to antitrust concerns.
Then in early 2025, during Spirit’s first bankruptcy restructuring, Frontier offered at least two merger proposals, both of which Spirit rejected, according to Reuters. Shortly before Spirit declared a second bankruptcy in August 2025, top Frontier and Spirit executives held a meeting, according to the Reuters report.
Now a merger could be a potentially appealing option for Spirit, which has been slimming down its operations in recent months in order to cut operating costs. The carrier has reduced its fleet and staffing numbers and has trimmed routes and airport operating slots.
And with a different presidential administration, it’s possible a large airline merger could be approved, unlike the JetBlue deal in 2024.
Plus, the timing of a deal this time around could be apt, with Frontier navigating a major change as well. The Denver-based airline announced earlier this week it has replaced its CEO of 11 years Barry Biffle with a new leader of the company, James Dempsey, who has been with Frontier for more than a decade.
“I look forward to partnering with our team to write Frontier's next chapter as we strive to create long-term value for all stakeholders,” Dempsey said upon his promotion.
Amid the reported merger talks, Spirit also had another bright spot of news this week. The airline secured $50 million in immediately available cash to continue operations in a credit agreement with senior secured noteholders.
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