Low-cost carrier Spirit Airlines has rejected a second bid to merge with Frontier Airlines, saying the Denver-based airline’s offer was too low. Frontier said in a statement Wednesday that the merger “would provide meaningful value to Spirit financial stakeholders” in excess of Spirit’s restructuring plan.

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

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.

Frontier is making an offer to acquire the beleaguered Spirit Airlines, which filed for bankruptcy in November.

Frontier Airlines is making another offer to merge with bankrupt Spirit Airlines, less than two years after a previous plan fell through.

Frontier Airlines is attempting for a second time to merge with the now bankrupt Spirit Airlines, which declared bankruptcy late last year as budget airlines struggle. Frontier Group Holdings Inc., the parent company of Frontier Airlines, said Wednesday that the proposed deal would include newly issued Frontier debt and common stock.

Budget carrier Frontier Airlines announced on Wednesday that it has made another bid for fellow discount carrier Spirit Airlines, which is in bankruptcy, for an undisclosed sum.