Spirit Airlines is scaling back operations across numerous U.S. cities this fall as it navigates financial challenges, while competitors are positioning themselves to capture its customers. United Airlines recently announced a wave of new flights in markets served by Spirit, including Fort Lauderdale and Orlando, Florida, as well as Las Vegas, Houston, and Chicago. United said the added flights are intended to provide options for travelers if Spirit ceases operations.
Spirit responded sharply to the announcement, emphasizing its commitment to low fares and rejecting suggestions that its survival is in question. Duncan Dee, Spirit’s senior vice president of corporate communications, described United’s comments as an attempt by a higher-cost airline to reduce competition and charge travelers more. Spirit reaffirmed that it has been providing affordable air travel for over 30 years and expects to continue doing so.
The airline is cutting service in cities including Albuquerque, Birmingham, Boise, Chattanooga, Columbia, Portland, Salt Lake City, and multiple California locations such as Oakland, San Diego, Sacramento, and San Jose. Spirit is also canceling plans to launch flights to Macon, Georgia. Affected passengers will be contacted regarding refunds and alternative options. Frontier Airlines, the second-largest U.S. budget carrier behind Spirit, also recently unveiled 20 new routes overlapping Spirit’s network, further intensifying competition.
United’s expanded service will begin January 6 and includes additional flights between Houston, Chicago, and Los Angeles, as well as new options connecting Los Angeles to Las Vegas and Chicago to Orlando, Fort Lauderdale, New Orleans, and Las Vegas. Analysts note that Frontier has the highest seat overlap with Spirit at 39%, while United overlaps by 18%. Full-service carriers may benefit from Spirit’s troubles, as they can leverage extensive global networks, premium products, and basic economy offerings that appeal to low-cost travelers.
Spirit filed for Chapter 11 bankruptcy for the second time in less than a year after struggling with weak demand and high operational costs following its earlier restructuring. The airline plans to scale down its network and reduce its fleet, expecting cost savings of hundreds of millions of dollars annually. Despite projecting a net profit of $252 million, Spirit reported a loss of $257 million through the end of June.
The airline also warned of potential survival risks unless cash flow improves, borrowing its full $275 million revolving credit facility and facing additional restrictions from its credit card processor. Spirit had previously planned furloughs for hundreds of pilots this fall as part of its broader cost-cutting strategy.
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