"Frontier Airlines is looking to capitalize on its rival's financial woes. The budget carrier announced 20 new routes on Tuesday, with some fares as low as $29. They include key Spirit Airlines hubs like Fort Lauderdale, the beleaguered carrier's home base. Starting in late November, Frontier said it will fly from Fort Lauderdale to Baltimore, Charlotte, Dallas/Fort Worth, Detroit, Chicago, and Houston."
"Earlier this month, Spirit announced it might not survive another year without extra cash. 'As industry capacity adjusts, we want to ensure consumers in those markets continue to have affordable flight options,' Frontier CEO Barry Biffle said in Tuesday's press release. The airline stands to benefit the most from Spirit's difficulties. A Monday Deutsche Bank research note said 35% of Frontier's capacity overlaps with its rival."
"When Spirit warned of its financial problems earlier this month, Frontier's stock jumped 29%. Spirit had reported a second-quarter loss of $246 million and said its credit-card processor was demanding collateral. However, in a filing last week, Spirit said it had paid $50 million to extend its card processing agreement until the end of 2027. It also said it had borrowed $275 million under a revolving credit facility with Citibank and Wilmington Trust."
Frontier Airlines announced 20 new routes with fares as low as $29, adding service to key Spirit hubs including Fort Lauderdale and multiple other cities. The carrier plans Fort Lauderdale service to Baltimore, Charlotte, Dallas/Fort Worth, Detroit, Chicago, and Houston beginning in late November, and will add six routes from Detroit with some flights starting in February. Spirit reported a second-quarter loss of $246 million, warned it might not survive another year without extra cash, paid $50 million to extend a card-processing agreement through 2027, and borrowed $275 million under a revolving credit facility. Frontier and Spirit overlap about 35% in capacity.
Read at Business Insider
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