Frontier (US:ULCC) Zhi Tong Cai Jing·2025-12-17 14:56Group 1 - Frontier Group's stock rose over 7.5% as merger talks with Spirit Aviation Holdings have resumed, with a potential announcement by the end of this year [1] - Previous attempts to merge between the two companies were unsuccessful, but the market sees a clear rationale for their integration as major ultra-low-cost carriers in the U.S. [1] - A successful merger could create a larger operator in the leisure aviation market, improving fleet and route utilization efficiency, and enhancing cost negotiation power in fuel, maintenance, and distribution, thereby improving overall profitability [1] Group 2 - For Frontier, acquiring Spirit's Airbus narrow-body fleet and route network at a relatively low valuation is viewed as a significant opportunity for accelerated expansion [1] - Spirit's current asset situation is perceived to be in a "distressed valuation" range, making it an attractive target for potential acquirers [1] - Investors are also monitoring whether JetBlue Airways will respond, as JetBlue previously attempted a hostile takeover of Spirit in 2022, which was ultimately blocked by antitrust issues [1]