Spirit Airlines and Frontier Airlines are reportedly back in merger discussions, reopening a long-running storyline in the U.S. ultra-low-cost carrier market. The talks have not been confirmed publicly, but reports suggest that if the sides reach terms, an announcement could come soon.
Frontier has declined to comment, while Spirit has said it does not address market rumors, even as it acknowledges it is exploring strategic options tied to its ongoing restructuring.
The renewed interest comes at a moment when both airlines are under heavy financial and operational pressure. Spirit is in the middle of another Chapter 11 bankruptcy reorganization within a little over a year, and it has been aggressively shrinking to conserve cash.
Flight schedules have been cut significantly compared with late last year, and the airline is also reducing its fleet, including plans to return dozens of leased aircraft. Spirit has signaled it is negotiating a transaction that could help it exit Chapter 11, while also preparing a path forward as a standalone carrier if a deal does not materialize.
Frontier, meanwhile, has been wrestling with the same post-pandemic reality that has challenged many budget airlines: higher labor costs, shifting customer expectations, and a growing emphasis on premium extras like more legroom. Over the first three quarters of the year, Frontier posted sizable losses and recently made a major leadership change by dismissing longtime CEO Barry Biffle.
The carrier has been working on product adjustments intended to lift revenue, including plans to introduce a first-class option, though such changes can take time to meaningfully impact performance.
A Spirit-Frontier tie-up would not be new. The two airlines agreed to merge before, only for Spirit to walk away in favor of a higher bid from JetBlue. That JetBlue-Spirit deal was later blocked by U.S. regulators, leaving Spirit to navigate its problems without the rescue it expected.
If Frontier were to acquire Spirit now, it would gain roughly an extra 100 aircraft and greater scale to compete, even as the largest U.S. carriers can still undercut fares by expanding basic economy inventory.