Frontier Airlines proposes merging with bankrupt Spirit — again. Spirit says no
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 29 2025
0mins
Source: CNBC
Spirit Airlines Rejects Merger Offer: Spirit Airlines has turned down a merger proposal from Frontier Airlines, citing the terms as "inadequate and unactionable," while Frontier argues that Spirit's standalone plan would lead to financial struggles post-bankruptcy.
Challenges for Budget Carriers: Both airlines are facing difficulties in the post-pandemic market, with rising costs and changing consumer preferences, prompting them to adapt their business models by eliminating fees and offering bundled services.
Analyst Views on ULCC
Wall Street analysts forecast ULCC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ULCC is 6.00 USD with a low forecast of 3.00 USD and a high forecast of 9.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
2 Buy
8 Hold
0 Sell
Hold
Current: 5.080
Low
3.00
Averages
6.00
High
9.00
Current: 5.080
Low
3.00
Averages
6.00
High
9.00
About ULCC
Frontier Group Holdings, Inc. is a holding company. The Company operates through its subsidiary, Frontier Airlines, Inc., which is an ultra-low-cost carrier company. The Company offers flights throughout the United States and to select near international destinations in the Americas. It has a fleet of approximately 159 Airbus single-aisle aircraft, consisting of eight A320ceos, 82 A320neos, 21 A321ceos and 48 A321neos. The Company primarily provides air transportation for passengers. It provides passenger airline service primarily to leisure travelers. It combines its fares with flexible optional services for an additional cost. Such additional options include carry-on and checked baggage, advance seat selection, extended-legroom premium seats, priority boarding and ticket changes and cancellations, as well as bundled options combining various optional services. The Company serves approximately 100 airports throughout the United States and international destinations in the Americas.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
