After much financial turmoil this year, Spirit Airlines has once again reentered merger discussions with Frontier Airlines. As reported by Reuters, these talks are coming as Spirit recently received an immediate lifeline of $50 million to extend operations, funding that likely prevented the airline from shutting down altogether. Spirit and Frontier first proposed a merger in 2022, but the two parties have yet to reach a firm agreement.

The surprising part of these new reports is Frontier’s involvement. Former Frontier CEO Barry Biffle was reportedly cautious about entering a full merger or acquisition agreement with another airline, due to the significant financial and logistical challenges associated with such a move. However, as of Friday, December 12, Biffle exited the role as CEO, and the new reports combined with this development suggest that the company may be more committed to this deal.

A Potential Merger Between Frontier And Spirit, Again

Frontier Airlines and Spirit Airlines are reported to have reentered merger discussions. The two carriers previously planned to merge in 2022, but the process was blocked by a higher bid by JetBlue. The merger between JetBlue and Spirit ended up being blocked in 2024, with Spirit remaining as an independent airline. Since then, Frontier proposed two additional bids, which were both rejected by Spirit Airlines.

Spirit Airlines has filed for bankruptcy twice in 2025, and could have potentially ended operations had it not received a new round of funding. $50 million was awarded immediately, while another $50 million is awaiting a further reorganisation or a potential sale. This has allowed the company to continue operations, although it’s still in a dire financial situation.

Frontier Airlines has been hesitant on a merger, but on Friday, Barry Biffle abruptly exited the role as the company’s CEO. He will remain in an advisory role until the end of the year, with President James Dempsey being named as interim CEO. With the sudden change in leadership and renewed talks regarding a Spirit Airlines merger, it’s clear that this may be a more serious effort by Frontier to acquire Spirit.

What Do Spirit And Frontier Bring To The Table?

While Frontier itself is experiencing financial difficulties, Spirit Airlines is undoubtedly the weaker of the two, and it also has fairly poor brand equity. As such, you might expect that a Frontier merger would result in the Spirit Airlines brand fading away and the yellow planes being repainted. Primarily, the main appeal of a merger with Spirit Airlines from Frontier’s perspective is assets, namely planes, staff, and airport gates.

Planespotters.net shows that Spirit Airlines is only operating 102 aircraft at present, whereas Frontier operates 172 aircraft. If Frontier were to formally acquire Spirit, it would end up with 279 aircraft, which would tie it with JetBlue as the US’s sixth-largest airline. Both Spirit and Frontier exclusively operate the Airbus A320 family, using Pratt & Whitney-powered A320neos and A321neos, along with the A320-200 and A321-200. However, some models have different engines across the carriers.

Frontier has a more secure financial position, a slightly better brand name, and even a complementary route network with a greater focus on the western part of the US compared to Spirit Airlines. The dynamics of the US airline industry have shifted substantially, to the point where budget airlines are at a significant disadvantage. Creating a large national budget airline may make for a more formidable competitor to the US legacy carriers.

Why Are Budget Airlines In Trouble In The US?

After the COVID-19 pandemic, US travelers are increasingly favoring airlines with large premium cabins, extensive long-haul networks, a thorough frequent flyer program, and a premium brand image. Budget airlines simply do not fit this mold, and many low-cost carriers have been struggling, not just Spirit.

Across the nation, the most successful airlines are Delta Air Lines, United Airlines, and Alaska Airlines, while the rest are recording significantly lower profits or are losing money. As such, Frontier has made a thorough overhaul of its business and operating model to boost profits.

One issue faced by budget airlines is their lack of scale, which can reduce relevance in many key markets. A national carrier could see boosted recognition, resulting in an increase in demand, so Frontier may need Spirit Airlines to survive in the long run.