JetBlue & Spirit Airlines announced today that they have agreed to merge in a $3.8 billion deal that will position the new combined company as a formidable low-cost competitor to the nation’s four largest airline carriers (American Airlines, Delta, Southwest & United Airlines).
The deal comes on the heels of a previously announced merger agreement on February 7, 2022, between Denver, Co.-based Frontier Airlines & Miramar, FL.-based Spirit Airlines.
The Frontier & Spirit merger agreement ultimately fell through after a bidding war with New York-based JetBlue Airways, leading JetBlue to win the bid to merge with the low-cost South Florida-based carrier.
The JetBlue/Spirit merger will increase the company’s total customer base to 77 million. Its fleet will also increase to 458 planes with an order book of over 300 aircraft. Daily flights will also exceed 1700+ to 30 countries as the company’s presence increases in major airport hubs across the United States.
Annual revenues for the combined company will be approximately $11.9 billion, with yearly synergies of $600-700 million once the two airline carriers fully integrate.
The combined company would create the nation’s fifth largest airline carrier if approved by antitrust regulators.