JetBlue makes surprise bid to buy Spirit, could upend Frontier deal
JetBlue has made a bid to acquire ultra-low-cost carrier Spirit Airlines, a surprise move that could imperil Spirit's own plans to merge with Frontier Airlines.
The news of JetBlue's apparent interest in Spirit was first reported Tuesday afternoon by The New York Times, which cited "three people with knowledge of the matter."
The deal would be valued at about $3.6 billion and would trump Frontier's cash and share offer for Spirit, according to the Times.
Each of the airlines confirmed the offer in statements issued after the Times story broke.
"The combined company would maintain the JetBlue brand and continue to be based in New York City," JetBlue said in its statement. "The current merger proposal assumes the rebranding and retrofitting of Spirit's fleet as JetBlue, introducing a superior onboard experience to Spirit customers."
As for Spirit, it confirmed it had received an "unsolicited" offer and that it would "evaluate JetBlue's proposal and pursue the course of action it determines to be in the best interests of Spirit and its stockholders."
JetBlue's bombshell bid would come just two months after Frontier and Spirit agreed to merge in a deal that would create an ultra-low-cost juggernaut. That deal would still need to be cleared by regulators, but JetBlue's move may now throw that deal into doubt.
"This is very unexpected and is just as interesting and intriguing," Henry Harteveldt, a travel industry analyst and president of Atmosphere Research, said to TPG.
Now what? Does JetBlue's bid for Spirit put its American Airlines partnership at risk?
"If the JetBlue offer is accepted by Spirit and if the Department of Justice approves this merger, it would enable JetBlue to expand dramatically by reallocating Spirit's aircraft on different routes, potentially even giving JetBlue enough aircraft to open another hub somewhere perhaps in the center of the country."
But it could prompt some to question what JetBlue's primary motivation is with its deal for Spirit — either to take over a competitor or to make Spirit's merger with another rival more costly.
Frontier and Spirit operate complementary route networks and business models, while JetBlue's overall fit with Spirit would be less obvious.
"(If) Spirit accepts this merger, it means the U.S. would lose one of its budget airlines and I'm honestly not sure how the Department of Justice would view this," Harteveldt added. "JetBlue sees this as a way to take out a budget airline competitor and one where the two compete extensively between Fort Lauderdale and Central and South America. That's one reason why I wonder if the Department of Justice would approve this merger."
The competition for Spirit is likely to drive up the acquisition cost for the carrier no matter who prevails. The Times calculated JetBlue's bid offers a premium of 40% more than what Frontier offered in its original deal. Frontier executives now will be forced to consider whether they should raise their bid to counter JetBlue.
And, for JetBlue, it also could face skyrocketing expenses if its bid is accepted, said Robert W. Mann, an aviation analyst and former airline executive based in Long Island, New York.
While Frontier and Spirit share similar products and labor costs, JetBlue would face costs related to integrating labor forces and retrofitting Spirit plane cabins to include roomier seats and live-TV enabled inflight entertainment at every seat.
"It's a very expensive proposition and it gravitates higher and not lower," he said in reference to JetBlue. "They're gonna pay twice on that. Once on the purchase and twice on the integration."
As for Frontier, it cast its own doubt on JetBlue's bid.
"The Spirit and Frontier transaction is in the best interest of consumers and shareholders," Frontier told TPG in a statement, adding that its deal with Spirit would be "creating America's most competitive ultra-low fare airline."
Frontier also cast doubt on whether the bid from JetBlue — which has already been sued by the Department of Justice over its Northeast Alliance with American — would pass muster with regulators.
"Unlike the compelling Spirit-Frontier combination, an acquisition of Spirit by JetBlue, a high-fare carrier, would lead to more expensive travel for consumers," Frontier said. "In particular, the significant East Coast overlap between JetBlue and Spirit would reduce competition and limit options for consumers. It is surprising that JetBlue would consider such a merger at this time given that the Department of Justice is currently suing to block their pending alliance with American Airlines."
Stay tuned ...
Additional reporting by TPG's Ethan Klapper.
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 3X | Earn 3X Miles on Delta purchases. |
| 1X | Earn 1X Miles on all other eligible purchases. |
Pros
- Delta SkyClub access when flying Delta
- Annual companion ticket for travel on Delta (upon renewal)
- Ability to earn MQDs through spending
- Various statement credits for eligible purchases
Cons
- Steep annual fee of $650
- Other Delta cobranded cards offer superior earning categories
- Earn 100,000 Bonus Miles after you spend $6,000 or more in purchases with your new Card within the first 6 months of Card Membership and an additional 25,000 bonus miles after you make an additional $3,000 in purchases on the Card within your first 6 months, starting from the date that your account is opened. Offer Ends 04/01/2026.
- Delta SkyMiles® Reserve American Express Card Members receive 15 Visits per Medallion® Year to the Delta Sky Club® when flying Delta and can unlock an unlimited number of Visits after spending $75,000 in purchases on your Card in a calendar year. Plus, you’ll receive four One-Time Guest Passes each Medallion Year so you can share the experience with family and friends when traveling Delta together.
- Enjoy complimentary access to The Centurion® Lounge in the U.S. and select international locations (as set forth on the Centurion Lounge Website), Sidecar by The Centurion® Lounge in the U.S. (see the Centurion Lounge Website for more information on Sidecar by The Centurion® Lounge availability), and Escape Lounges when flying on a Delta flight booked with the Delta SkyMiles® Reserve American Express Card. § To access Sidecar by The Centurion® Lounge, Card Members must arrive within 90 minutes of their departing flight (including layovers). To access The Centurion® Lounge, Card Members must arrive within 3 hours of their departing flight. Effective July 8, 2026, during a layover, Card Members must arrive within 5 hours of the connecting flight.
- Receive $2,500 Medallion® Qualification Dollars with MQD Headstart each Medallion Qualification Year and earn $1 MQD for each $10 in purchases on your Delta SkyMiles® Reserve American Express Card with MQD Boost to get closer to Status next Medallion Year.
- Enjoy a Companion Certificate on a Delta First, Delta Comfort, or Delta Main round-trip flight to select destinations each year after renewal of your Card. The Companion Certificate requires payment of government-imposed taxes and fees of between $22 and $250 (for itineraries with up to four flight segments). Baggage charges and other restrictions apply. Delta Basic experiences are not eligible for this benefit.
- $240 Resy Credit: When you use your Delta SkyMiles® Reserve American Express Card for eligible purchases with U.S. Resy restaurants, you can earn up to $20 each month in statement credits. Enrollment required.
- $120 Rideshare Credit: Earn up to $10 back in statement credits each month after you use your Delta SkyMiles® Reserve American Express Card to pay for U.S. rideshare purchases with select providers. Enrollment required.
- Delta SkyMiles® Reserve American Express Card Members get 15% off when using miles to book Award Travel on Delta flights through delta.com and the Fly Delta app. Discount not applicable to partner-operated flights or to taxes and fees.
- With your Delta SkyMiles® Reserve American Express Card, receive upgrade priority over others with the same Medallion tier, product and fare experience purchased, and Million Miler milestone when you fly with Delta.
- Earn 3X Miles on Delta purchases and earn 1X Miles on all other eligible purchases.
- No Foreign Transaction Fees. Enjoy international travel without additional fees on purchases made abroad.
- $650 Annual Fee.
- Apply with confidence. Know if you're approved for a Card with no impact to your credit score. If you're approved and you choose to accept this Card, your credit score may be impacted.
- Terms Apply.
- See Rates & Fees