In a move that is set to reshape the competitive landscape of the U.S. airline industry, Frontier Airlines has made a second bid to acquire Spirit Airlines, intensifying the ongoing merger talks between the two low-cost carriers. The offer, which comes after a previous attempt to merge in 2022 was blocked by regulators, underscores Frontier’s determination to expand its footprint in the U.S. market and create a major competitor to the larger, traditional airlines.
The latest offer from Frontier Airlines, made public in late January 2025, is part of an ongoing effort to consolidate the low-cost sector and address the rising costs that are challenging budget carriers. The proposed deal could be worth approximately $2.9 billion, a significant increase over the initial bid and designed to address regulatory concerns that led to the rejection of the 2022 proposal by the Federal Trade Commission (FTC).
Frontier’s new bid for Spirit Airlines comes with a more attractive offer for Spirit’s shareholders, as well as enhanced concessions aimed at addressing antitrust concerns. The proposal includes assurances that the combined company would not reduce competition on certain key routes or lead to fare increases, which were primary concerns for regulators during the last merger attempt.
Frontier and Spirit Airlines, both known for their ultra-low-cost business models, argue that the merger would create a stronger competitor against the Big Four U.S. carriers — American Airlines, Delta Air Lines, United Airlines, and Southwest Airlines. Together, they say, the merged airline could offer more competitive prices while maintaining a robust network of domestic and international routes. This is a compelling opportunity to combine two of the most successful low-cost airlines in the United States to create a truly competitive force in the marketplace. The merger would allow us to better compete with the largest airlines in the world while continuing to offer affordable travel options for millions of Americans, said Barry Biffle, President and CEO of Frontier Airlines, in a statement.
Spirit Airlines, which has also been dealing with ongoing financial challenges and the need to maintain its market share amid rising operating costs, has expressed a willingness to consider the bid. Spirit’s executives highlighted that the deal would create efficiencies through shared infrastructure, economies of scale, and expanded network offerings, which could ultimately benefit passengers.
However, the proposed merger still faces significant hurdles. One of the main challenges for Frontier and Spirit will be to overcome the intense regulatory scrutiny that blocked their previous attempt to merge in 2022. The FTC raised concerns about the reduction in competition on certain routes, particularly within the domestic U.S. market, where both airlines have a significant presence in the low-cost segment. Regulators were worried that a merger of the two carriers would result in fewer choices for consumers and higher ticket prices. In response, Frontier has emphasized its commitment to keeping prices low and ensuring that the merger would benefit consumers in the long term. The airline has proposed a series of remedies aimed at addressing the concerns raised by the FTC, including the potential for selling off certain routes to other carriers to maintain competition and preserve lower fares on key domestic and international flights.
We are committed to working with regulators to address any concerns they may have and ensuring that this merger benefits both consumers and employees. Our goal is to create a more competitive airline industry that provides more affordable travel options, not less, Biffle added.
Spirit Airlines has also made efforts to ease concerns by highlighting the benefits of combining the two carriers, particularly in terms of lower operating costs, expanded route networks, and improved customer service. Spirit’s current CEO, Ted Christie, expressed confidence that the merger would create a stronger, more sustainable airline.
If successful, the merger between Frontier and Spirit would create the fifth-largest airline in the U.S., combining two carriers that together serve over 80 million passengers annually. With the airline industry continuing to recover from the effects of the COVID-19 pandemic, both carriers are looking to capitalize on growth opportunities in the rapidly evolving travel market. The combined carrier would have an extensive domestic and international route network, including popular vacation destinations in the Caribbean, Mexico, and Central America. This could give the merged airline a competitive edge in the growing leisure travel market, particularly as more passengers return to flying following pandemic-related restrictions.
However, critics of the merger argue that it could lead to less competition in the low-cost carrier segment and reduce the overall availability of budget-friendly travel options. There are also concerns that employees of both airlines could face job cuts or reduced benefits as the two companies streamline operations post-merger. Several consumer advocacy groups have already voiced their opposition to the deal, citing the potential for higher fares and reduced service on certain routes. This merger would effectively eliminate one of the few remaining budget-friendly options for American travelers, said Chris Elliott, a consumer advocate and travel industry expert. By consolidating these two airlines, we could see fares rise, especially on the most popular routes.
Despite the hurdles, both Frontier and Spirit are pushing forward with the deal, emphasizing that the merger would ultimately benefit passengers and increase competition in the airline industry. The combined airline would have more flexibility to weather economic fluctuations, manage operating costs, and offer even more competitive pricing to consumers.
In addition, the merger would likely lead to a more streamlined operational structure, combining both airlines’ fleets and leveraging shared resources to reduce costs. Frontier and Spirit have both invested heavily in technology and customer service enhancements in recent years, and the merger could further improve the customer experience with expanded loyalty programs, better in-flight services, and enhanced digital offerings. The new airline would be able to offer an even better travel experience for our customers while maintaining our commitment to ultra-low fares, said Christie. We are excited about the possibilities that come with this merger and look forward to the regulatory review process.
As Frontier and Spirit Airlines await the results of the regulatory review process, stakeholders across the aviation industry are closely monitoring the situation. The Federal Trade Commission’s decision will be critical in determining whether the merger proceeds or faces further delays. If regulators approve the deal, the airline industry could see a significant shift, with two of the largest low-cost carriers in the U.S. joining forces to create a more competitive airline. For now, the ball is in the court of regulators, who will carefully assess the potential impact on consumers, competition, and the broader airline market. In the meantime, Frontier and Spirit Airlines remain optimistic about the future and are determined to push forward with their vision of creating a stronger, more competitive airline for the American traveler.
Should the deal be approved, it will be a landmark moment in the airline industry, reshaping the landscape of affordable travel for years to come.
