Frontier Airlines is attempting to merge with Spirit Airlines once again, after the latter filed for bankruptcy last year amid challenging conditions for budget airlines. Frontier's new proposal, announced on January 29, 2025, includes a combination of stock and cash totaling around $2.1 billion, aimed at solidifying a stronger low-cost carrier in the competitive U.S. airline market. However, Spirit swiftly rejected the offer, indicating that it falls significantly short of the previous $2.9 billion merger deal announced in 2022, which was ultimately abandoned in favor of a more lucrative offer from JetBlue (New York Times). Amidst ongoing discussions, Frontier emphasized the potential benefits of the merger, such as enhanced travel options and competitive pricing for consumers. Frontier's CEO, Barry Biffle, expressed optimism, stating, “As a combined airline, we would be positioned to offer more options and deeper savings.” Nonetheless, Spirit has conveyed its intentions to restructure its finances independently as it navigates its Chapter 11 bankruptcy situation (AP News). The complexities surrounding the merger attempts stem from Spirit’s financial downturn, which has seen it lose over $2.5 billion since 2020, alongside significant debt obligations looming in the coming years. As the landscape for U.S. budget airlines becomes increasingly competitive, with larger airlines capturing many of Spirit’s budget-conscious passengers, Frontier argues that its proposal could ultimately yield greater long-term value for both companies (CNN). In light of these developments, although Spirit has firmly stated its initial rejection of Frontier’s offer, it remains open to further negotiations, suggesting the door is still slightly ajar for potential collaboration in the future.