Frontier Airlines Offers to Buy Spirit Airlines, Again

Published On Jan 29, 2025, 8:18 AM

Spirit Airlines has rejected Frontier Airlines' recent $2.1 billion merger proposal, indicating the offer is below expectations compared to a previous $2.9 billion deal. Spirit, which filed for bankruptcy last year, is open to further negotiations. Frontier proposes that combining their services would enhance travel options and provide savings for consumers.

Stock Forecasts

ULCC

Negative

Frontier's ambitious bid, if restructured and accepted, might position them better in the highly competitive budget airline segment, potentially buoying their stock. However, with the current rejection by Spirit, investor confidence might wane, leading to negative short-term sentiment for Frontier.

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Frontier Airlines struck out yet again in its second attempt to acquire rival carrier Spirit Airlines. Spirit filed for bankruptcy last year as it faced mounting losses.