Frontier Airlines offers flight tickets discounts, stocks soar after Spirit Airlines announced shutting down

Frontier Airlines and JetBlue Airways were considered as rivals of Spirit Airlines. Spirit's shutdown is likely to benefit aforementioned carriers who themselves are reeling from the cost shock. Spirit's volatile over-the-counter stock plunged 25 per cent on Friday, while Frontier rose 10 per cent and JetBlue gained 4 per cent.

After Spirit's announcement, major U.S. carriers rolled out rescue-fare options for affected passengers. Frontier announced systemwide discounts and plans to add summer routes, JetBlue offered $99 fares through Wednesday, Southwest introduced special fares, United capped prices on one-way tickets and American added rescue fares while reviewing options to boost capacity on key routes.

Bankrupt discount carrier Spirit Airlines ceased operations on Saturday, the industry's first casualty linked to the Iran war, after failing to secure creditor support for a U.S. government bailout plan.


The collapse of the first carrier due to a doubling in jet fuel prices during the two-month-old Iran war will cost thousands of jobs. It is a blow to President Donald Trump, who had proposed $500 million to save Spirit despite opposition from some of his ‌closest advisers and many Republicans ⁠in Congress.

No ⁠U.S. carrier of Spirit's size - it accounted for 5 per cent of U.S. flights at one point - has liquidated in two decades. Spirit helped keep fares lower in markets where it competed against major carriers.

A Spirit board ​meeting had ended without an agreement to rescue the company, a person close to the discussions told Reuters late on Friday.

"Unfortunately, despite the Company's efforts, the recent material increase in oil prices and other pressures ​on the business have significantly impacted Spirit's financial outlook," Spirit said in a statement announcing "an orderly wind-down of operations."

All flights have been canceled, the statement said, asking passengers not to go to the airport.

Spirit had 4,119 domestic flights scheduled between May 1 and May 15, offering 809,638 seats, according to data from aviation analytics firm Cirium.

A spokesperson said Spirit had notified the Federal Aviation Administration before halting ​operations, declining to comment further.

Global carriers are contending with surging jet fuel prices after the U.S.-Israeli strikes on Iran disrupted traffic ⁠through the Strait ‌of Hormuz. Spirit was already struggling to turn a profit before the fuel shock.

Spirit built its brand around affordable fares for budget-conscious travelers ready to eschew ​add-ons like checked bags and seat ​assignments.

That demand tapered off quickly after the COVID-19 pandemic, as passengers preferred to opt for comfort and experience-based travel, leaving ultra-low-cost carriers struggling to ⁠adapt.