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Frontier Airlines buying Spirit in $3B budget carrier deal

Frontier is offering to buy Spirit Airlines in a $2.9 billion cash-and-stock deal that will create the nation's fifth largest carrier. The tie-up is valued at $6.6 billion when accounting for the assumption of debt and other liabilities.

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Frontier is offering to buy Spirit Airlines in a $2.9 billion cash-and-stock deal that will create the nation’s fifth largest carrier. The tie-up is valued at $6.6 billion when accounting for the assumption of debt and other liabilities.

Highlights

  • Frontier Airlines’ parent company is buying Spirit Airlines in a $2.9 billion cash-and-stock deal that will allow the combined airline to be more competitive against its larger rivals.
  • The companies say the transaction will provide more low-cost fares for more travelers to destinations in the U.S., Latin America and the Caribbean.
  • The two airlines reported fourth quarter financial results Monday and both lost money in the final three months of 2021, Spirit $87.2 million and Frontier $53 million.
  • The deal is expected to close in the second half of the year.
  • The name that the combined company will use has yet to be determined, the name of the merged company will be determined.