United and Frontier Airlines have added a flurry of new routes as they capitalize on the plight of Spirit Airlines, which is on a desperate cost-cutting binge and just filed for bankruptcy for the second time in a year.
Key Facts
Last Friday, Spirit Airlines filed for Chapter 11 bankruptcy protection for the second time in less than a year after spending months selling assets, furloughing pilots, and slashing routes to reduce costs. United Airlines announced Thursday it was adding routes to 15 cities, with Patrick Quayle, United senior vice president of global network planning and alliances, pointedly noting, “if Spirit suddenly goes out of business, it will be incredibly disruptive, so we’re adding these flights to give their customers other options if they want or need them.”
Also Thursday, ultra-low-cost carrier Frontier Airlines—which failed in several attempts to acquire Spirit in recent years—announced 22 new routes. Spirit has not announced plans to cease operations, but warned investors last month it might not survive another year without additional cash infusions.
The beneficiaries of Spirit’s misfortune “depend on what happens with Spirit’s assets, including how much of Spirit’s capacity is backfilled and by which airlines,” Savanthi Syth, an analyst at Raymond James covering the airline sector, wrote in a note to investors this week. On Wednesday, Spirit was notified that it will be delisted from the New York Stock Exchange after its stock had plunged 94% since the beginning of 2025.
Credit: Forbes
