In a Weak U.S. Market, Spirit and Frontier Sound the Alarm
For most U.S. airlines, the summer represented a turning point after economic uncertainty and declining consumer confidence had roiled the industry earlier this year. For many carriers, domestic demand — a sore spot for the industry — was finally starting to stabilize and even improve.
However, for Spirit Airlines and Frontier Airlines, the two largest ultra-low-cost carriers in the U.S., the landscape is still grim.
Spirit, which had just emerged from Chapter 11 bankruptcy in March, said in a securities filing on Monday that it may not be able to survive if it doesn't raise more cash. The carrier pointed to an oversupply of seats and weak demand in the domestic market as some of the factors affecting its bottom line.
'The Company has continued to be affected by adverse market conditions, including elevated domestic capacity and continued weak demand for domestic leisure travel in the second quarter of 2025, resulting in a challenging pricing environment,' the filing read. 'As a result, the Company continues to expe
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