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Share to FacebookShare to TwitterShare to LinkedinTopline Frontier Airlines’ parent company, Frontier Group Holdings, agreed to buy Spirit Airlines in a multibillion-dollar deal, the companies announced Monday morning, forming the fifth-largest airline in the United States following the merger of the two low-cost airlines.

Frontier Airlines A320 at Cleveland Hopkins International Airport

getty Key Facts The full transaction value of the deal is $6.6 billion and values Spirit at $2.9 billion.

Spirit shareholders will receive 1.9126 Frontier shares and $2.13 in cash for each share they hold, marking a 19% premium from Spirit’s closing price Friday.

The newly formed company will trail only American Airlines, Delta, United and Southwest among U.S. airlines in terms of revenue passenger miles.

William A. Franke, the chairman of Frontier Group’s board of directors, said the deal will create “America’s most competitive ultra-low fare airline” in the release announcing the deal.

Big Number 17.2%. That’s how much shares of Spirit Airlines jumped in Monday trading, closing at $25.46 while Frontier stock rose 3.5% to $12.82.

Crucial Quote Spirit CEO Ted Christie said in the release: “We are thrilled to join forces with Frontier to further democratize air travel. This transaction is centered around creating an aggressive ultra-low fare competitor…. We look forward to uniting our talented teams to shake up the airline industry.”

Further Reading Frontier Airlines Is Overtaking Spirit Airlines As The Leading U.S. ULCC (Forbes)

Frontier Group to Buy Spirit Airlines in $6.6 Billion Deal (Wall Street Journal)

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