Several budget airlines could benefit from Sprit
Airlines' Chapter 11 bankruptcy filing.
“On an available-seat-mile basis, industry shorthand for how many potential customers can be flown over a given distance, JetBlue and
Frontier will likely get the most breathing room should Spirit have to dramatically cut its capacity,” according to Quartz. “Though Deutsche Bank points out that American Airlines, Delta Air Lines, and United
Airlines have a greater share of domestic-market overlap with Spirit than all but Frontier Airlines, the routes aren’t as critical to their bottom lines because they have significant
international businesses.”
Travelers who have tickets booked on Spirit may need to panic.
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“The low-cost carrier, which has not reported an
annual profit since 2019 and has lost more than $2.2 billion since the start of 2020, reassured its customers that flights would be taking off as scheduled and that travelers could continue to book
tickets,” according to The New York Times. “Many companies, including major
airlines, have emerged from Chapter 11 bankruptcy — a process that allows a company to financially restructure while still operating — on stronger footing.”
The
no-frills airline lost its footing after a long run of quarterly losses.
“Spirit's troubles deepened after the collapse of its $3.8 billion planned merger with JetBlue
Airways in January and the impact of RTX's, Pratt & Whitney Geared Turbofan engines snag that grounded many of its aircraft,” according to USA Today. “The airline listed its
estimated assets and liabilities in the range of $1 billion to $10 billion each, according to a court filing on Monday.”
Most, if not all, Spirit flights should operate as
scheduled in the near term.
“The airline, known for its bargain fares, said it expects to emerge from bankruptcy in the first quarter of 2025, ‘even better positioned to
deliver the best value in the sky,’” according to CBS News. “Industry experts attribute
Spirit's financial woes in part to changing consumer preferences as they demand more amenities while flying.”