JetBlue agrees to buy Spirit for $3.8 billion

JetBlue said on Thursday that it would pay 33.50 per share in cash for Spirit, including a prepayment of 2.50 per share in cash payable once Spirit stockholders approve the transaction. The airlines will continue to operate independently until after the transaction closes.

JetBlue has agreed to buy Spirit Airlines for $3.8 billion in a deal that would create the nation's fifth largest airline if approved by US regulators. The agreement on Thursday comes a day after Spirit's attempt to merge with Frontier Airlines fell apart. Spirit had recommended its shareholders approve a lower offer from Frontier, saying that antitrust regulators are more likely to reject the bid from JetBlue. JetBlue said on Thursday that it would pay $33.50 per share in cash for Spirit, including a prepayment of $2.50 per share in cash payable once Spirit stockholders approve the transaction. There's also a ticking fee of 10 cents per month starting in January 2023 through closing.

The combined airline would have a fleet of 458 aircraft. The airlines will continue to operate independently until after the transaction closes.

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