Spirit and Frontier Airlines Explore Potential Merger Amid Financial Struggles

The budget carriers have initiated preliminary talks as Spirit faces significant debt challenges and considers restructuring options.

Spirit Airlines is in early discussions with Frontier Airlines about a possible merger as part of Spirit's debt restructuring strategy.
Spirit has been under financial strain, with over $3.3 billion in total debt and recent losses despite high travel demand.
Following a blocked merger with JetBlue, Spirit has negotiated an extension on debt repayment deadlines to avoid immediate bankruptcy.
Spirit's stock has seen volatile movements, with recent gains attributed to news of debt refinancing and merger talks.
Frontier previously attempted to acquire Spirit in 2022 but was outbid by JetBlue, whose merger proposal was later blocked by antitrust concerns.