On 16 May 2022, Forter Airlines aircraft near a Frontier Airlines aircraft near a Spirit Airlines at Fort Lauderdel-Hollywood International Airport in Fort Lauderdel, Florida.
Joe Redal | Getty images
Marginal airlines Going after customers Spirit AirlinesWhose financial posts have become so unstable in recent weeks that it has been warned earlier this month. Live another year Without more cash.
Frontier announced 20 routes to start this winter on Tuesday, many of them are in the major soul markets like its base at Fort Lauderdel International Airport in Florida. According to the Monday note of Michael Linburgh, an analyst of the Duthe Bank Airline, the frontier overlaps a sense of 35%of his capacity, more than any other airline, more than any other airline.
Some new routes of Frontier in Forte Lauderdel include flights to Detroit, Houston, Chicago and Charlotte, North Carolina. It is also rolling out the routes from Houston to New Orleans; San Pedro Sula, Honduras; And Guatemala City.
The frontier tried and fail To Merge Several times since 2022 with their budget-airline rival.
Frontier’s CEO Barry Bifle said in an interview with CNBC on Tuesday, “I am not here to talk about M&A. Bifle said that he hopes that if he hopes that if the collapse of the Spirit, most of the market share of the Frontier Spirit will be raised.”
Both carriers have struggled by changing the taste of more upmarket seats and traveling abroad, oversuply of domestic capacity and customer and other costs of high labor and other costs. Soul The situation has become more serious However, in March, it caused many of the same problems due to the four -month bankruptcy conservation.
Ultra-Lo cost airlines are also challenged by big rivals United Airlines, American Airlines, Delta air lines This has rolled out its own no-frills basic economy tickets, but also offer customers large options for destinations and other allowances on the board like snacks and beverages.
Earlier this month, the stock prices of rival airlines increased after Spirit warning.
Biffle said that the carrier wants to become the largest budget airline in the country and has rolled out loyalty matching programs to catch more customers. Frontier’s capacity was slightly smaller than the spirit in the second quarter, later a year ago its flight fell to about 24%, while the frontier was only 2% below.
Spirit said last week that it dropped the entire $ 275 million of its revolver and when it reached a two -year extension on its credit card processing agreement with the US Bank National Association, he agreed that it would return to $ 3 million per day from the carrier.
The airline lost $ 245.8 million in the second quarter. Marginal Lost $ 70 million.
The soul is looking for ways to reduce costs agile And to demot hundreds of more pilots and cut the unprofitable routes. Hundreds of flight attendants are on unpaid leaves of absence.
Spirit CEO Dave davis 1 August 12 Staff Memo said that after its “anxiety”, it has been warned that “the team and I believe that we can build a feeling that will continue to provide unmatched value to consumers that they have come to expect for many years to come.”
The carrier reached a deal with bondholders, which agreed to convert the debt into equity in his chapter 11 bankruptcy, but did not cut other costs, such as rebuilding aircraft leases. According to people familiar with the case, the leasing firms are reaching rivals in recent weeks whether the contestants will take any airbus aircraft into the hands of the soul.
– CNBC Phil Lebue Contributed to this report.
