JetBlue buys Spirit for $3.8 billion

FILE - A line of Spirit Airlines jets sit on the tarmac at Orlando International Airport on May 20, 2020, in Orlando, Fla. Spirit Airlines is again postponing a shareholder vote on its proposed merger deal with Frontier Airlines, after Frontier's CEO said in a letter that his airline is “very far” from winning approval by Spirit shareholders. (AP Photo/Chris O'Meara, File)

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FILE - A line of Spirit Airlines jets sit on the tarmac at Orlando International Airport on May 20, 2020, in Orlando, Fla. Spirit Airlines is again postponing a shareholder vote on its proposed merger deal with Frontier Airlines, after Frontier's CEO said in a letter that his airline is “very far” from winning approval by Spirit shareholders. (AP Photo/Chris O'Meara, File)

JetBlue is buying Spirit Airlines in a $3.8 billion deal, a day after Spirit and Frontier Airlines agreed to abandon their merger proposal

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

The agreement Thursday 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.

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FILE - Frontier Airlines jets sit at gates at Denver International Airport on Sept. 22, 2019, in Denver. Spirit Airlines is again postponing a shareholder vote on its proposed merger deal with Frontier Airlines, after Frontier's CEO said in a letter that his airline is “very far” from winning approval by Spirit shareholders. (AP Photo/David Zalubowski, File)

Credit: David Zalubowski

FILE - Frontier Airlines jets sit at gates at Denver International Airport on Sept. 22, 2019, in Denver. Spirit Airlines is again postponing a shareholder vote on its proposed merger deal with Frontier Airlines, after Frontier's CEO said in a letter that his airline is “very far” from winning approval by Spirit shareholders. (AP Photo/David Zalubowski, File)

Credit: David Zalubowski

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FILE - Frontier Airlines jets sit at gates at Denver International Airport on Sept. 22, 2019, in Denver. Spirit Airlines is again postponing a shareholder vote on its proposed merger deal with Frontier Airlines, after Frontier's CEO said in a letter that his airline is “very far” from winning approval by Spirit shareholders. (AP Photo/David Zalubowski, File)

Credit: David Zalubowski

Credit: David Zalubowski