Spirit had previously pushed back the shareholder vote, hoping it could muster support for the Frontier deal. It will now continue discussions to sell itself to JetBlue Airways Corp, the sources said. The negotiations are progressing favorably, the sources added.

The sources requested anonymity because the matter is confidential. Spirit, JetBlue and Frontier did not immediately respond to requests for comment.

(Reporting by Anirban Sen and Greg Roumeliotis in New York; Editing by Chizu Nomiyama)

By Anirban Sen and Greg Roumeliotis