Last year, Spirit Airlines filed for bankruptcy. This time, their former suitor, Frontier Airlines, is trying once again to merge with them. This move comes as budget airlines face tough times. Frontier is offering Spirit a mix of its own debt and stocks. They've been talking to Spirit's board, management, and financial stakeholders.

Spirit isn't so sure about this deal. They think their own plan to exit bankruptcy is better for their shareholders. This comes after a failed attempt in 2022 when JetBlue outbid Frontier. The Justice Department stepped in to block that deal due to concerns about higher prices for low-fare customers.

Frontier is hopeful they can seal the deal this time. They believe a merger would create a stronger low-cost airline that can compete better and expand into new markets. The airline industry has seen budget-conscious customers shifting to bigger airlines offering basic tickets. Plus, leisure travel fares dropped this summer due to more flights.

Spirit has lost over $2. 5 billion since 2020 and faces big debt payments in the coming years. Frontier's stocks rose by 6% on the news of their new offer.

Will Frontier Airlines Succeed in Merging with Bankrupt Spirit?

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