Budget airlines Frontier and Spirit to merge in $6.6 billion deal that could create the US' 5th largest airline

• Spirit Airlines and Frontier are merging, the companies announced on Monday morning.
• The deal is valued at $6.6 billion, and makes the combined airline the fifth-largest in America.

Frontier and Spirit Airlines are combining in a deal valued at $6.6 billion, the airlines' parent companies said on Monday morning.

Once combined, the new airline will be the fifth-largest in the US — behind companies like American Airlines, Delta, and Southwest.

Currently, Spirit and Frontier are the two main competitors in the budget US airline market. By merging, the companies said they "expect to deliver $1 billion in annual consumer savings."

Those savings will apparently manifest through, "consumer price savings gained from new route entry enabled by the proposed transaction," the companies said.

Beyond promised savings, Frontier and Spirit merging will unify and expand flight options with "more than 1,000 daily flights to over 145 destinations in 19 countries across complementary networks," the companies said.

Airlines have struggled across the last two years due to massive travel reductions as a result of the global coronavirus pandemic, even after receiving a $60 billion bailout from the US government.

Though more Americans are returning to airlines, the Transportation Security Administration is still showing a major decrease in travelers from pre-pandemic numbers.

Frontier is leading the merger and, if approved, will control the majority of shares in the combined company. Moreover, the chairman of Frontier's board, William A. Franke, will become the chair of the new company.

The deal, if approved, is expected to close by the end of 2022.

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