Rumors continue to swirl around yet another attempt at a merger between Frontier and Spirit Airlines, amid the latter’s long string of financial challenges.

Now Denver-based Frontier is in a transitional period of its own after longtime CEO Barry Biffle unexpectedly stepped down last December.

Biffle’s 30-year career in airlines culminated with him leading the low-cost airline since 2016. Beyond calling Biffle “an invaluable member of Frontier’s senior leadership team for more than 10 years” and someone who “played an instrumental role in the company’s evolution,” Frontier has not commented on the reasons behind the abrupt announcement that he would leave his post on Dec. 15.

Jack Dempsey, the former Frontier president who was put in place as interim CEO to replace Biffle, has now been permanently appointed to the role.

James Dempsey appointed permanent Frontier CEO, called “right leader”

“Jimmy has demonstrated over his more than a decade at Frontier that he’s the right leader to drive our airline forward,” Frontier board chair Bill Franke said in a statement. “His expertise will help us capitalize on the opportunities we see ahead, preserve our industry-leading cost advantage and guide Frontier into the future.”

Dempsey’s career at Frontier began when he joined as chief financial officer in 2016; he has served as president since 2023.

Related: Frontier CEO says offer it gave travelers was a big mistake

Frontier has struggled with profitability throughout 2025; in the last third-quarter earnings call, the carrier reported net losses of $190 million for the year up until September.

Shares from a year ago are currently down 41%, while on Jan. 6, Bank of America downgraded Frontier from underperform to neutral with a price target of $4 instead of $5.

Dempsey’s compensation, according to the regulatory filing submitted by Frontier to the SEC, will include $747,000 as a base salary and an increased incentive of 125% of that upon completion of set targets.

The markets opened with Frontier shares up 6% at $5 upon the news of Dempsey’s appointment.

James Dempsey has been appointed as permanent CEO of Frontier Airlines.

Frontier Airlines

The latest on the Frontier-Spirit merger: Is it still on?

In December, Bloomberg News reported that Frontier and Spirit have once again renewed their talks about a potential merger.

The two low-cost airlines had tried to merge twice before, but discussions in 2022 fell apart when Spirit accepted a higher offer of a $3.6 billion by New York-based JetBlue Airways — an acquisition that was ultimately called off by a federal judge over antitrust concerns in March 2024.

Spirit later ended up rejecting Frontier’s offer of $400 million in take-back debt and 19% shares sold to creditors to make up for the losses at the start of 2025.

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No major developments on this front have emerged since that time, but the future of the two airlines looks increasingly shaky, given the changing low-cost airline market.

While once able to win over customers with rock-bottom base fares, rising labor costs and high competition for many routes have left many low-cost carriers struggling to offer prices that are significantly different from what mainstream airlines offer with basic economy.

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