Under the improved proposal, JetBlue offers Spirit’s shareholders $31.50 per share in cash, which is comprised of $30 per share at deal close and the prepayment of $1.50 per share of the reverse break-up fee.
The $1.50 per share will be paid as a cash dividend if Spirit shareholders vote for the JetBlue-Spirit deal.
JetBlue’s earlier offer was for $30 per share.
Shares of Spirit Airlines jumped 6.2% to $22 premarket.
JetBlue also raised the reverse break-up fee by $150 million to $350 million, which is payable to Spirit shareholders in case the deal falls through due to regulatory reasons.
The improved proposal comes days after Frontier Group Holdings agreed to pay a break-up fee of $250 million in a bid to salvage its $2.9 billion acquisition of Spirit.