Spirit Airlines is in the midst of some high-profile struggles, and it looks like fellow budget airline Frontier Airlines is looking to take advantage.
Earlier this month, Spirit Airlines issued a pretty ominous warning when it filed paperwork with the Securities and Exchange Commission (SEC) stating that “there is substantial doubt” about its future.
With Spirit struggling, Frontier Airlines appears set to swoop in and attempt to take its place in the market.
Spirit Airlines Admits Struggles
After filing for bankruptcy back in November, Spirit Airlines has been attempting to rebound over the past few months. However, it does not seem as though that rebound is going as planned.
Last week, Spirit filed paperwork with the Securities and Exchange Commission (SEC) stating that “there is substantial doubt” about its future.
“Because of the uncertainty of successfully completing the initiatives to comply with the minimum liquidity covenants and of the outcome of discussions with Company stakeholders, management has concluded there is substantial doubt as to the Company’s ability to continue as a going concern within 12 months from the date these financial statements are issued,” the company said.
While the company’s CEO offered a bit of an explanation the following day, it’s still pretty clear that the company’s situation has not greatly improved over the past several months.
Frontier Airlines Takes Aim at Spirit
Amid Spirit’s well-documented struggles, it appears that Frontier Airlines is looking to take advantage by offering several new flights, many of which overlap with routes currently offered by Spirit.
“Frontier on Tuesday announced 20 routes it plans to start this winter, many of them in major Spirit markets like its base at Fort Lauderdale International Airport in Florida. Frontier overlaps with Spirit on 35% of its capacity, more than any other airline, according to a Monday note from Deutsche Bank airline analyst Michael Linenberg,” Leslie Josephs wrote for CNBC this week.
The new domestic routes are launching from Houston, Detroit, Fort Lauderdale, Dallas, Charlotte, and Baltimore later this year into early next year.
Frontier and Spirit Have History
While the two budget airlines have been longtime competitors, they actually have a bit of history as Frontier has looked to merge with Spirit multiple times since 2022. Those efforts have obviously been unsuccessful. However, with Spirit apparently failing, Frontier might have another chance in the near future.
During an interview with CNBC on Tuesday, Frontier CEO Barry Biffle was asked whether or not Frontier would attempt to buy Spirit amid its struggles. However, he did not necessarily want to talk about that possibility.
“I’m not here to talk about M&A,” Biffle told CNBC, referring to mergers and acquisitions.
That said, Biffle did tell CNBC that he expects that Frontier would pick up the majority of Spirit’s market share if Spirit were to collapse.
