Spirit Airlines Rejects Frontier's $2.16B Merger Bid

Spirit Airlines has rejected yet another acquisition proposal from Frontier Airlines, valued at approximately $2.16 billion, citing that the bid is less beneficial than its current restructuring plan. The proposal included $400 million in debt and a 19% equity stake in Frontier for Spirit's shareholders, but Spirit deemed it insufficient compared to its reorganization strategy, which is expected to conclude in early 2025. Frontier had dropped some previous requirements, such as a $350 million equity rights offering, but Spirit raised concerns about unresolved risks and regulatory uncertainties. Spirit had also previously countered with a proposal for $600 million in debt and $1.185 billion in equity, which Frontier rejected. The two airlines have been in intermittent merger talks since 2022, with an earlier higher bid from Frontier and a competing offer from JetBlue being thwarted by regulatory challenges. Spirit remains focused on its Chapter 11 restructuring plan, aiming to stabilize financially as it proceeds independently.