The two airlines are the largest budget carriers in the US and any deal between the two could reshape the American airline industry.

Frontier and Spirit Airlines will once again try to merge, only months after the Biden administration won a key antitrust court battle to block an attempt by JetBlue to buy Spirit.

Rather than accept Frontier’s offer, Spirit said it will stick to its current plan to emerge from Chapter 11 bankruptcy.

Spirit, which filed for bankruptcy protection last year, says it has rejected the new Frontier overture but would be open to a higher offer.

Frontier tried to merge with Spirit in 2022 but was outbid by JetBlue. However, the Justice Department sued to block the $3.8 billion JetBlue deal, saying it would drive up prices for Spirit customers who depend on low fares, and a federal judge agreed in January. JetBlue and Spirit dropped their merger bid two months later.

Spirit filed for Chapter 11 bankruptcy protection in November 2024, six months after a proposed merger with JetBlue collapsed.

Other airlines like Spirit and Frontier have also introduced similar premium bundles with benefits like guaranteed middle seats and early boarding. JetBlue's EvenMore premium ticket bundle is officially on sale and the revamped service will be fully implemented across the airline's network on Tuesday.

The Federal Aviation Administration announced that Frontier Airlines implemented a ground stop for all destinations, but lifted the order shortly thereafter.

Bankrupt Spirit Airlines Inc. rejected a new acquisition offer from the parent of Frontier Airlines but said it remains open to a long-discussed combination of the budget carriers.

(CNN)– Frontier Airlines took another swing at joining forces with Spirit Airlines. In a statement on Wednesday, Jan. 29, Frontier officials say a merger would allow Spirit to escape from bankruptcy. Spirit is not interested and rejected the offer saying it was too low.

In our opinion, Southwest has the best balance sheet of all the US-based carriers. As the pandemic has wreaked havoc on air travel demand and airlines’ business model, liquidity became more paramount since 2020 than it had been in previous years.