Multiple US media outlets have carried stories concerning a possible merger between Spirit Airlines and Frontier.

Neither airline has as of yet commented on the issue. However, if true then this represents the third time that Frontier has attempted to buy into its yellow low-cost rival, having previously made offers before and after the aborted JetBlue merger in 2023.

Spirit faces a number of problems, including higher operating costs and an unpopular image among its target customers. Earlier this year , it filed  for bankruptcy protection, although it is still allowed to operate having negotiated funding to keep it afloat while restructuring takes place.

READ: Report finds Spirit Airlines has ‘significant structural and financial weaknesses’ 

Back in 2022 Frontier and Spirit announced plans to merge in a deal valued at about $6.6 billion. The goal was to create a large LCC that could compete more aggressively with the big four airlines (American, Delta, United, Southwest).

Shortly after the announcement, JetBlue made a competing offer to acquire Spirit, which complicated the merger talks. JetBlue’s bid was higher in value, but Spirit’s board initially favoured Frontier’s offer because they believed it had fewer regulatory hurdles. Spirit shareholders were divided. JetBlue’s offer was financially more attractive, but there were concerns about antitrust issues since JetBlue operates a different model to Spirit. After months of back-and-forth, Spirit ultimately terminated the merger agreement with Frontier in July 2022 and accepted JetBlue’s offer. JetBlue planned to acquire Spirit for $3.8 billion, aiming to expand its network and challenge larger carriers.

Regulatory Challenges: The JetBlue-Spirit deal faced significant scrutiny from the U.S. Department of Justice over concerns that reducing ULCC competition would raise fares. In fact, the DOJ filed a lawsuit to block the merger in 2023, and as of my knowledge cutoff (June 2024), the case was still ongoing.