Frontier eyes Spirit market share despite wider loss
Frontier Airlines expects to capture Spirit demand after its rival shut down. The carrier forecast a larger second-quarter loss due to rising fuel costs.
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FRONTIER GROUP HOLDINGS INC expects unit revenue to rise 20% in the second quarter following the shutdown of Spirit Airlines. The budget carrier shares more than 100 overlapping routes with the defunct airline, more than any other United States rival. Spirit's collapse removes Frontier's primary price competitor, allowing the firm to raise fares and capture market share.
Frontier shares rose nearly 6% on Tuesday afternoon as investors weighed the impact of Spirit's exit. The airline expects Spirit's departure to contribute 2 percentage points to its unit revenue growth.
