United Airlines is expanding its presence in markets previously dominated by Spirit Airlines. This move is followed by Spirit's bankruptcy filing and ongoing reduction in services. The Frontier Group is also capitalising on the situation by introducing new routes to Latin America and the Caribbean. These expansions aim to provide alternative options for travellers affected by Spirit's restructuring.
United Airlines rushed to capitalise on rival Spirit Airlines' financial troubles on Thursday, expanding its presence in the bankrupt discount carrier's key markets, including Fort Lauderdale, Orlando, and Las Vegas, as Frontier Group announced new routes to Latin America and the Caribbean. Florida-based Spirit Airlines, which filed for its second bankruptcy protection last week, has been shrinking its operations and retreating from several routes that have opened up opportunities for rivals. The company said it has discounted service to 11 US cities, including Portland, Oregon, and San Diego and no longer plans to launch service to Macon, Georgia, which was scheduled to start in mid-October.
"As part of our efforts to change our business and position Spirit for long-term success, we are adjusting our network to focus on our strongest emerging markets," a company spokesperson said in a statement. United will start selling tickets on Thursday for new flights to 15 cities where Spirit operates. The Chicago-based airline said it will fly large aircraft between Chicago and New York LaGuardia to help customers outside of its hubs connect to the newly added flights.
"If Spirit suddenly goes out of business, it will be incredibly disruptive, so we are adding these flights to give their customers other options if they want or need them," said Patrick Quuayl, United's senior vice president of global network planning and alliances. Frontier introduced 20 new flights to Spirit's strongholds in late August. On Thursday, the low-cost carrier announced 22 additional routes, expanding its service in the US, the Caribbean, and Latin America, including the launch of service to the Turks and Caicos. "We expect these carriers to continue to see a sizable benefit from Spirit's retrenchment despite having less total overlap," TD Cowen analyst Tom Fitzgerald wrote in a note this week.
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