By Chris Isidore, CNN
(CNN) — No airline is more likely than Frontier Airlines to benefit from the demise of Spirit. But no airline is more at risk of suffering the same fate.
Financial problems and higher fuel costs tipped long-struggling budget airline Spirit over the edge when it went out of business on May 2. Frontier, which sought to merge with its low-cost rival in 2022, is well-positioned to benefit from Spirit’s absence. Its routes have the most overlap with Spirit, and both cater to budget travelers through similar business models: low-base fares coupled with extra charges for everything else.
As airlines start their critical summer travel season, Frontier may find itself in better financial shape with Spirit out of the picture — it has already raised fares on the routes it shared with Spirit. But Frontier is still vulnerable to the many problems plaguing the overall US airline industry, and especially the low-fare segment of the market.
“(Frontier) has a much stronger cash position (than Spirit had),” said Shye Gilad, a business professor at Georgetown University and former airline executive. “But I don’t dismiss the pressure that the industry is under, especially for these ultra-low-cost carriers.”
All airlines, from the upstart budget carriers to the four major US commercial airlines, are struggling with jet fuel costs. Fuel, the second largest expense for airlines after labor, is now up 30% from before the start of the war in Iran.
Most airlines are raising fares and fees to make up for higher costs. But even with fares up more than 20% from last year, airlines haven’t been able to cover all the new expenses.
And Frontier, like Spirit, was in financial trouble even before the fuel spike. The Denver-based airline lost $137 million last year when jet fuel was relatively inexpensive. In fact, the airline has bled money every year since the pandemic, aside from earning a narrow profit in 2024.
Frontier’s executives, however, dismiss doubts about its long-term future.
“We were on a very, very good trajectory in Q1 prior to the fuel price spike,” CEO James Dempsey said on an earnings call in early May just after Spirit went out of business. “We were actually going to get very close to break even in Q1 and we were certainly on a trajectory to make money in Q2.”
Low ticket prices are a good way to attract bargain-hunting leisure travelers, but a tough way to turn a profit in an industry working on thin margins. The budget model also doesn’t attract the industry’s most critical customers: those willing to pay more for a better flying experience. That includes first class or business class, but also the premium seats in the middle of the plane that offer slightly more legroom, priority boarding and less time to exit the plane upon landing.
The three largest airlines — Delta, United and American — now earn the majority of their profits from those passengers. Delta reported that revenue from premium seats essentially matched its main cabin and basic economy revenue in the first quarter.
But it’s more than just low fares and profit margins working against Frontier. Airlines are also, first and foremost, a service industry, and Frontier has a poor reputation for customer service.
The JD Power rankings of airline customer satisfaction put Frontier dead last — behind even Spirit, whose low rankings were a big reason it had to shut down.
“Their service isn’t as good as (major carriers). It’s as simple as that,” said Michael Boyd, an airline industry consultant. “Right now, Frontier is a carrier people take because of the fare.”
But Frontier has been incorporating service upgrades. It restored call-in customer service for passengers in Spring 2024 after discontinuing it in 2022. It also recently started offering wider first-class seats, and Wi-Fi should be available by 2027.
Frontier told CNN that it is improving customer service, particularly by reducing flight delays and cancellations.
“We are strongly focused on improving operational reliability,” a spokesperson told CNN. “We anticipate further improvements as various initiatives are fully implemented.”
Frontier added that it saw its best first-quarter revenue while Spirit was still in business, validating its strategy “and the resilience of our operating model.”
But Frontier’s biggest challenge in the wake of Spirit’s demise is overcoming its reputation as a budget carrier that skimps on frills that most travelers expect when they fly.
“You can restructure a lot of things, but what you can’t restructure is whether or not you have customers who want to get on your airplane,” said Boyd. “Nobody wants to get on an airline that literally wants to nickel and dime passengers. I wouldn’t get on Frontier unless I had to. If they had the last flight out of Saigon, I’d still reconsider.”
The-CNN-Wire™ & © 2026 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.
Will Frontier learn from Spirit’s mistakes? Budget airlines face tough road ahead News Channel 3-12.
Hence then, the article about will frontier learn from spirit s mistakes budget airlines face tough road ahead was published today ( ) and is available on News channel ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( Will Frontier learn from Spirit’s mistakes? Budget airlines face tough road ahead )
Also on site :
- Art Garfunkel Makes Surprise Return to Madison Square Garden with Charlie Puth in Special Performance of "The Boxer"
- The Coronation Of Santa Maria’s 2026 Rodeo Queen
- EU and NATO pushing Romania toward war with Russia – MEP