Frontier Airlines and Spirit Airlines Moving Forward to Create America’s Most Competitive Ultra-Low Fare Airline

Frontier Group Holdings, Inc., parent company of Frontier Airlines, Inc., today commented on Spirit Airlines' announcement that it is urging shareholders to reject JetBlue Airways’ unsolicited tender offer to acquire all outstanding shares of Spirit's common stock.

“We are pleased that the Spirit Board of Directors has again reaffirmed its commitment to combining with Frontier, which increases competition by bringing more ultra-low fares to more travelers and delivering substantial shareholder value,” said Barry Biffle, president and CEO of Frontier. “We are working with Spirit to complete our merger and create a true nationwide ultra-low fare airline to compete against the dominant ‘Big Four’ airlines and other high-cost airlines, including JetBlue. Together, we will super-charge the ultra-low-cost carrier model and create an even better option for consumers."

He continued, “The Spirit Board of Directors took the right step in urging its shareholders to reject JetBlue’s proposal and vote FOR the merger with Frontier. We continue to believe that JetBlue is worried about increased competition and put forward a proposal for a transaction that, simply put, can’t be completed. We remain focused on moving forward with Spirit to drive competition and deliver enhanced value to all of our stakeholders.”

Frontier noted the following:

• Together, Frontier and Spirit are expected to drive enhanced value for shareholders of both companies. Once combined, Frontier and Spirit expect to deliver annual run-rate operating synergies of $500 million after full integration is completed. Spirit shareholders will own approximately 48.5% of the combined company, providing them the opportunity to participate in the full pandemic recovery and upside from the expected synergies.
• Frontier and Spirit expect to add 10,000 direct jobs and thousands of additional jobs at the companies’ business partners by 2026. In addition, team members of the combined airline will have better career opportunities and more stability. The Association of Flight Attendants-CWA, AFL-CIO (AFA) has already provided support for the pending transaction and recognizes the value the combination will create for all stakeholders.
• A Frontier-Spirit combination is centered around creating an aggressive ultra-low fare competitor that will deliver $1 billion in annual consumer savings and bringing more ultra-low fares to more travelers in more destinations across the United States, Latin America and the Caribbean, including major cities and underserved communities. The combined airline will add new routes and offer more than 1,000 daily flights to over 145 destinations in 19 countries across complementary networks.
• Unlike the compelling Spirit-Frontier combination, an acquisition of Spirit by JetBlue, a high-fare carrier, would lead to fewer options and more expensive travel for consumers. JetBlue has stated it will reduce capacity and raise fares on Spirit routes. The Transport Workers Union has publicly stated that it opposes JetBlue’s proposed hostile takeover, noting JetBlue’s intentions to eliminate thousands of jobs and low-cost flight options for customers as part of its proposal.

Citigroup Global Markets Inc. is serving as financial advisor and Latham & Watkins, LLP is serving as legal advisor to Frontier.