WASHINGTON—JetBlue Airways said Monday it had sweetened its takeover offer for Spirit Airlines to $33.50 per share in a bid to convince the ultra-low cost carrier to accept its offer over rival Frontier Airlines’ proposal.
The move is the latest salvo in a tussle to create the fifth-largest U.S. airline, helping the buyer compete with larger legacy players at a time when the industry faces labor and aircraft shortages.
Spirit’s board had previously rejected the JetBlue offer, arguing that U.S. anti-trust regulators would not approve a tie up with JetBlue and noting that JetBlue refused to abandon its alliance with American Airlines….