Spirit Airlines Inc. stated late Wednesday it has ended its merger settlement with Frontier Group Holdings Inc. and will continue “discussions” with JetBlue Airways Corp., which doggedly pursued the extremely low-cost airline after it had made preparations with Frontier.
Spirit
SAVE,
+3.93%
is “disappointed that we had to terminate our proposed merger with Frontier,” the airline’s Chief Executive Ted Christie stated in a brief assertion.
Spirit and Frontier
ULCC,
+6.42%
introduced their deal in February, with JetBlue
JBLU,
+3.58%
coming into the fray in April. Both Frontier and JetBlue have since upped their gives for Spirit, battling it out for a piece of the booming leisure air-travel market amid pent-up demand after years pandemic-related journey restrictions.
“Moving forward, the Spirit board of directors will continue our ongoing discussions with JetBlue as we pursue the best path forward for Spirit and our stockholders,” Christie stated.
The Wall Street Journal reported Wednesday night time that JetBlue is closing in on a deal to purchase Spirit, and a deal might be introduced as quickly as Thursday.
Frontier stated Wednesday it was “disappointed that Spirit Airlines shareholders failed to recognize the value and consumer potential inherent in our proposed combination.”
The firm enters a “next chapter … well-positioned to deliver significant value to our shareholders as we serve the growing demand for affordable air travel,” Frontier stated, saying it was providing 1 million fares costing $19 every approach.
“No one is as cheap as Frontier,” it stated.
JetBlue didn’t instantly launch an announcement.
Shares of JetBlue had been flat within the prolonged session after ending the common buying and selling day up 3.6%. Spirit shares gained 2% after hours, after advancing 3.9% on the shut. Frontier shares slipped 1.3% after closing 6.4% increased.
