Frontier Airlines proposes merging with fellow budget carrier Spirit — again
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 29 2025
0mins
Source: CNBC
Frontier Airlines' Merger Proposal: Frontier Airlines has proposed a merger with Spirit Airlines, which is currently in bankruptcy, after a previous attempt was thwarted by JetBlue Airways' offer. Frontier believes its plan is superior to Spirit's standalone bankruptcy recovery strategy.
Rejection of the Deal: Spirit's leadership has rejected Frontier's proposal, deeming the terms "inadequate and unactionable," as both airlines face challenges in the post-pandemic market due to rising costs and changing consumer preferences.
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Analyst Views on ULCC
Wall Street analysts forecast ULCC stock price to fall
9 Analyst Rating
1 Buy
7 Hold
1 Sell
Hold
Current: 7.730
Low
4.00
Averages
5.57
High
8.00
Current: 7.730
Low
4.00
Averages
5.57
High
8.00
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 176 Airbus single-aisle aircraft, consisting of overe A320ceos, 89 A320neos, 21 A321ceos and 60 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.
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See More
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- Future of Low-Cost Carriers: While new entrants like Breeze Airways aim to fill the void left by Spirit, high fuel costs and competitive pressures pose challenges to the profitability of low-cost airlines, leaving their future growth uncertain.
See More
