Frontier Airlines announced it would purchase Spirit Airlines as part of a $2.9 billion deal to create America's fifth-largest carrier.

The cash-and-stock deal is valued at $6.6 billion when accounting for the assumption of debt and other liabilities, with the merger designed to help the low-cost airline compete with the "Big Four" airlines in the United States.

Officials from Frontier and Spirit said the transaction would provide low-cost fares for more travelers to destinations in the U.S., Latin America and the Caribbean. The companies also anticipate $1 billion in annual consumer savings and a massive expansion with more than 350 aircraft on order.

"We are thrilled to join forces with Frontier to further democratize air travel," Spirit CEO Ted Christie said. "This transaction is centered around creating an aggressive ultra-low fare competitor to serve our guests even better, expand career opportunities for our team members and increase competitive pressure, resulting in more consumer-friendly fares for the flying public.

"We look forward to uniting our talented teams to shake up the airline industry while also continuing our commitment to excellent Guest service," Christie continued.

The transaction is expected to close in the second half of the year, but it must gain approval from U.S. government anti-monopoly regulators, who have been working with President Joe Biden to make it more difficult to complete large corporate mergers.

The combined carriers will offer more than 1,000 daily flights to over 145 destinations in 19 countries, as well as expand frequent flyer and membership offerings.

Officials expect all current team members will have an opportunity to be a part of the combined airline, and plans are in place to add 10,000 direct jobs and thousands of additional jobs by 2026.

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