JetBlue raises offer for Spirit to $33.50 a share

• JetBlue Airways boosted its takeover offer for Spirit Airlines as it works to convince the carrier to accept its offer over Frontier Airlines' bid.
• JetBlue said its proposal represents a 68% premium to the implied value of the Frontier stock and cash transaction.

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LaGuardia International Airport Terminal A for JetBlue and Spirit Airlines in New York.

Leslie Josephs | CNBC

JetBlue Airways said Monday it had boosted its takeover offer for Spirit Airlines to $33.50 as it works to convince the ultra-low cost carrier to accept its offer over rival Frontier Airlines' proposal.

Spirit said last week it was in talks with JetBlue over its offer and expected to decide on the proposal by June 30. JetBlue said its proposal represents a 68% premium to the implied value of the Frontier stock and cash transaction.

The new proposal includes what JetBlue termed a "stronger divestiture commitment" to complete the Spirit deal but does not include abandoning JetBlue's Northeast Alliance with American Airlines.

Read more: Spirit says it will decide on JetBlue, Frontier proposals by the end of June