Spirit Airlines has declined Frontier Group’s latest acquisition bid, stating that its ongoing restructuring plan provides better value for shareholders.
Frontier’s Offer and Spirit’s Response
Frontier’s latest proposal included:

$400 million in debt
19% stake in Frontier for Spirit shareholders

Additionally, the revised offer dropped the requirement for Spirit to complete a $350 million equity rights offering and eliminated the $35 million termination fee.
Despite these changes, Spirit rejected the offer, citing unresolved risks and concerns that made the deal less favorable than its independent restructuring plan.
Spirit’s Counterproposal and Frontier’s Rejection
In response, Spirit proposed an alternative deal:

$600 million in debt
$1.185 billion in equity

However, Frontier dismissed Spirit’s counteroffer, indicating a significant gap in valuation expectations between both airlines.
Background: A History of Merger Attempts
Discussions between Spirit and Frontier date back to 2022, well before Spirit filed for bankruptcy protection due to financial struggles. However, JetBlue later entered the bidding war and secured a deal—only for a U.S. judge to block the merger on anti-competition grounds.
With the JetBlue deal terminated, Frontier revived its takeover attempt earlier this year, but Spirit has remained cautious, emphasizing the need for certainty before agreeing to any transaction.
Financial Position and Outlook
Spirit, which filed for bankruptcy last year, expects to complete its restructuring in Q1 2025. Investors are closely monitoring its financial position to assess whether it can successfully emerge as an independent airline or if a merger remains inevitable.
To track Spirit’s financial recovery, including its debt position and liquidity, investors can use the Balance Sheet Statements API. This API provides detailed insights into Spirit’s assets, liabilities, and overall financial health.
Additionally, upcoming earnings reports will be crucial in evaluating Spirit’s performance post-bankruptcy. The Earnings Calendar API enables investors to stay informed about Spirit’s financial disclosures and industry trends.
Conclusion
Spirit Airlines’ decision to reject Frontier’s offer underscores its confidence in a standalone restructuring strategy. While Frontier remains interested in consolidation, Spirit’s reluctance signals that any future deal must provide clear financial and strategic advantages.
With the airline industry facing rising operational costs and ongoing competition, the coming months will be pivotal in determining whether Spirit can sustain its independent path or whether a revised merger offer becomes inevitable.
Investors should closely monitor Spirit’s financial progress and future deal developments to make informed decisions in this evolving airline industry landscape.