Budget airlines are starting to look very different from their traditional no-frills roots. High costs, razor-thin margins, and an evolving travel market have forced them to switch gears.
23.10.2024 - 02:07 / skift.com / Spirit Airlines / Barry Biffle / Meghna Maharishi / Frontier Airlines
Spirit Airlines and Frontier Airlines have renewed talks about the prospect of a merger, according to a report from The Wall Street Journal, citing people familiar with the matter.
The report said the two carriers have held discussions about a potential merger, but the talks are still in the early stages and may not result in a deal.
A potential merger with Frontier would happen as part of Spirit restructuring its debt and other liabilities related to bankruptcy, according to the report.
Spirit is still in negotiations with bondholders over the terms of a possible bankruptcy and is exploring options to restructure its balance sheet that involve out-of-court transactions.
Frontier and Spirit declined to comment on the Journal’s report.
Spirit and Frontier were in talks over a merger two years ago. However, the deal fell apart after JetBlue made a more attractive offer to Spirit shareholders. Frontier initially offered to buy Spirit for $6.6 billion in a cash-stock deal that included a $2.9 billion equity value of Spirit, along with net debt and operating lease liabilities.
However, JetBlue made an all-cash offer valued at $3.8 billion at the time and included a higher break-up fee at $400 million.
After the JetBlue-Spirit merger collapsed, Frontier has publicly declined to comment on the idea of merging with Spirit again. At a Wings Club event in May, Frontier CEO Barry Biffle said Spirit had “some of the same challenges that we have,” but wouldn’t say if Frontier was open to a merger.
The carrier has struggled to post a profit since the pandemic and its future became increasingly uncertain in March after a federal judge blocked its merger with JetBlue.
On Friday, Spirit said it extended the deadline to refinance more than $1.1 billion in debt related to a credit card processing agreement. The carrier also drew down the entire $300 million it had available through its credit line.
To shore up its balance sheet, Spirit has furloughed pilots and deferred its Airbus deliveries. The ultra-low-cost carrier also announced that it would roll out premium products and bundled fares to attract customers willing to spend more.
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Budget airlines are starting to look very different from their traditional no-frills roots. High costs, razor-thin margins, and an evolving travel market have forced them to switch gears.
As the temperatures fall, so are airfare prices. Frontier Airlines is running its «Full Size Sale», which provides fares as low as $19 to destinations around the United States. Best of all, the flights can be booked five days of the week, whereas previous promotions from Frontier have been more limited in date availability. The sale ends on October 31, 2024 at 11:59pm EST, however tickets can be purchased for travel through February 26, 2025. This makes the sale a great option for travelers and families looking to take a winter getaway, or fly to a destination with warmer temperatures. Travel + Leisure spotted a variety of one-way flight deals including:
JetBlue is celebrating winter early with a pre-Halloween sale that has one-way fares starting at just $49.
Low-cost carrier Spirit Airlines is getting in the Halloween spirit with a spooky-good sale that has one-way flights starting as low as $48.
A getaway to warmer weather just got easier and cheaper.Avelo Airlines recently announced four new routes from the Orlando, FL area, and is celebrating with $46 fares. With the expansion of new routes, Avelo will be opening a new crew base at Lakeland International Airport, which is one hour and 15 minutes south of Orlando Airport, and one hour east of Tampa Airport, making it an alternative option for passengers visiting each of the two major Florida cities. From Lakeland, Avelo will launch service to Rochester, NY, San Juan, Puerto Rico, Concord, NC (which is near Charlotte, NC) and Manchester, NH (which is near Boston, MA). The low-cost carrier operates its flights from regional airports that are adjacent to major cities, which explains the Manchester and Concord airport options. Each new route will operate twice weekly, and Avelo states they are the only airline to operate direct service between each of the markets.
My wife and I have four young children who have traveled with us all over the country.
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