Spirit and Frontier Airlines on Monday announced a $6.6 billion merger, a combination of low-fare carriers that would create America’s fifth-largest airline. Like most of the US airline industry, Spirit and Frontier have been struggling with losses the last two years as air travel plunged during pandemic. Increasing competition in the airline industry is one of the issues that the Biden administration has cited as a priority. Frontier would be the purchasing airline in this deal, as Spirit shareholders would receive 1.9126 shares of Frontier plus $2.13 in cash for each of their shares. But Spirit shares are up only 12% premarket, while Frontier shares are down 2%, suggesting investor uncertainty about the deal being completed.

Source: CNN February 08, 2022 00:21 UTC