Frontier Group Holdings, Inc. Stock Price, News & Analysis

Spirit Airlines and Frontier Group Holdings have amended their merger agreement, introducing a reverse termination fee of $250 million in case the merger fails due to antitrust issues. This fee represents $2.23 per share for Spirit's shareholders, enhancing stockholder protections. Both companies' boards unanimously approved the amendment, which aims to solidify confidence in the merger’s strategic rationale and promote competitive pricing against larger carriers. The merger is expected to yield approximately $500 million in annual net synergies for Spirit shareholders.

Spirit Airlines continues to recommend stockholders vote FOR the merger with Frontier Group Holdings despite ISS's opposition. The ISS report highlights the strategic rationale of the Frontier deal and questions JetBlue's proposal, labeling it as defensive and opportunistic. Spirit's President argues that JetBlue's offer carries significant regulatory risks and insufficient value for stockholders. The merger with Frontier could create $500 million in annual synergies, while stockholders would not see cash from JetBlue for potentially two years.

On May 23, 2022, Spirit Airlines (NYSE: SAVE) announced that its Board of Directors has rejected JetBlue Airways Corporation's (NASDAQ: JBLU) unsolicited tender offer. Instead, the Board continues to recommend that stockholders vote for a merger with Frontier Group Holdings, Inc. (NASDAQ: ULCC), expected to close in the latter half of 2022, pending regulatory review and shareholder approval. The company will host a conference call at 4:30 p.m. ET to discuss this decision with analysts. Spirit has also filed a statement with the SEC regarding the tender offer for investor awareness.

Frontier Group Holdings, the parent of Frontier Airlines (NASDAQ: ULCC), announced participation by Barry Biffle and Ted Christie in a panel at the 15th Annual Wolfe Research Global Transportation & Industrials Conference on May 26, 2022, at 9:45 AM ET. The event will be web-streamed live on Frontier’s investor relations website. Frontier Airlines boasts more than 100 A320 aircraft and has the largest A320neo fleet in the U.S., achieving an impressive average of 43% fuel savings compared to other U.S. airlines, establishing itself as the most fuel-efficient airline in the country.

Frontier Airlines (NASDAQ: ULCC) has announced a merger with Spirit Airlines aimed at creating a competitive ultra-low fare airline. Supported by the Association of Flight Attendants, the transaction is projected to generate 10,000 direct jobs by 2026. Frontier's CEO, Barry Biffle, emphasized the positive impact on employees and stakeholders, forecasting $1 billion in annual savings and improved job security. This merger is poised to enhance the competitive landscape against major airlines and potentially lower fares for consumers.

Spirit Airlines has confirmed JetBlue's unsolicited tender offer to acquire all outstanding shares at $30 per share. The Spirit Board is evaluating the offer and advises stockholders to refrain from action until its review is complete. A formal position will be communicated within ten business days via a SEC filing. Spirit's Board previously deemed JetBlue's earlier proposals as not superior to its merger with Frontier. Financial and legal advisors are assisting in the evaluation.

Spirit Airlines' Board has unanimously rejected JetBlue's unsolicited proposal as a 'Superior Proposal' in favor of its merger with Frontier Airlines. The Board believes that the ongoing transaction with Frontier maximizes shareholder value, despite JetBlue's plans for acquisition. Concerns about the likelihood of antitrust clearance due to JetBlue's Northeast Alliance with American Airlines were highlighted as a significant risk. The merger with Frontier is anticipated to close in the second half of 2022, pending regulatory approval and shareholder consent.

Frontier Group Holdings, parent of Frontier Airlines, reported Q1 2022 operating revenue of $605 million, an 11% increase from Q1 2019. Ancillary revenue per passenger reached $69.28, up 21% from pre-COVID levels. However, the company faced a $121 million net loss due to high fuel costs averaging $2.99 per gallon. For Q2 2022, Frontier anticipates record revenues, projecting a 20% RASM growth from Q2 2019, supported by strong ancillary performance. Total operating expenses were $758 million, leading to an adjusted net loss of $109 million.