Spirit Airlines explores merger with Frontier amid bankruptcy - Bloomberg

Investing.com -- Spirit Aviation Holdings Inc. (OTC: FLYYQ) is in discussions to merge with Frontier Group Holdings (NASDAQ: ULCC), according to a Tuesday report from Bloomberg, citing people familiar with the matter.

The potential transaction could be announced as early as December, said the sources, who requested anonymity. They cautioned that the talks are still ongoing and might conclude without an agreement.

A merger would represent a major development for Spirit, which entered its second bankruptcy in less than a year when it filed in August 2025.

Frontier executives have long advocated for combining the two budget airlines, which previously focused on offering deeply discounted base fares while implementing fees for additional services.

Frontier Group Holdings Inc stock rose 7.5% in after-hours trading following the report.

The discussions come as Spirit works through its restructuring process. Both carriers have historically operated in the ultra-low-cost segment of the airline industry.

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