JetBlue buys Spirit for $3.8 billion

JetBlue is buying Spirit Airlines for $3.8 billion, creating the nation’s fifth largest airline.

The agreement today comes a day after Spirit’s attempt to merge with Frontier Airlines fell apart.

JetBlue will acquire Spirit for $33.50 per share in cash, 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 will have a fleet of 458 aircraft. The airlines will continue to operate independently until after the transaction closes.