Spirit Airlines is set to cut jobs as the airline plans to reduce capacity by 25% year-on-year in November, according to a memo seen by Reuters on Wednesday, deepening woes for the low-budget carrier. ...

Group 1 - The airline plans a 25% cut in capacity over 2024 to optimize its network and focus on stronger markets [1] - The CEO indicated that job cuts are likely as the airline negotiates with vendors and aircraft lessors to stabilize operations [2] - The company has already announced furloughs and demotions affecting hundreds of pilots, with plans to meet labor leaders soon [3] Group 2 - The airline is preparing to reduce its November schedule as part of cost-cutting measures following its second bankruptcy in less than a year [1][2] - The CEO emphasized the need for tough decisions to emerge stronger, acknowledging the uncertainty these changes bring to employees [2] - The company is committed to keeping employees informed as decisions regarding team sizes and efficiency are made [2]

Core Viewpoint - Frontier Airlines CEO Barry Biffle challenges United Airlines CEO Scott Kirby's assertion that the deep discount model in the U.S. airline industry is dead, emphasizing the oversupply issue in the market [1][2]. Group 1: Industry Dynamics - Biffle argues that there is a flight oversupply issue in the United States, countering Kirby's claims about the viability of discount airlines [2]. - Kirby predicts that Spirit Airlines, the largest U.S. discounter, will go out of business, citing its recent bankruptcy as evidence of financial instability [2][3]. - Kirby's comments suggest a competitive landscape where discount carriers may struggle to survive, with Biffle positioned as a potential leader among them [3].

A Spirit Airlines Inc. passenger jet got a little too close for comfort with a Boeing Co. 747 jumbo ferrying US President Donald Trump to London on Tuesday as the aircraft traveled through New York’s famously congested skies.Air Force One and Spirit Flight 1300, an Airbus SE A321 jet bound from Fort Lauderdale to Boston, were heading over Long Island when an air traffic controller noticed their altitudes were similar and flight paths converging. He tried to alert the Spirit pilots to change their course.Whi ...

Core Viewpoint - United Airlines CEO Scott Kirby announced that the company will not pursue a bid for the assets of bankrupt Spirit Airlines if they become available [1] Company Summary - United Airlines has made a clear decision regarding the potential acquisition of Spirit Airlines' assets, indicating a strategic choice to refrain from entering the bidding process [1]

Core Viewpoint - The ongoing conflict between United Airlines and Spirit Airlines highlights the challenges faced by ultra-low-cost carriers (ULCC), with United's CEO predicting Spirit's imminent failure due to its business model and customer dissatisfaction [1][2][4]. Group 1: United Airlines' Position - United Airlines CEO Scott Kirby asserts that Spirit Airlines operates a fundamentally broken business model, claiming that consumer preference indicates a lack of support for Spirit's offerings [2][4]. - Kirby expressed confidence in his prediction of Spirit's failure, attributing it to his analytical skills [2]. - United Airlines plans to capitalize on potential route opportunities if Spirit goes out of business, announcing new routes to 15 cities starting January 6, 2026 [8][9]. Group 2: Spirit Airlines' Response - Spirit Airlines countered Kirby's claims by emphasizing customer satisfaction with their low fares and new service options, suggesting that United's focus on them indicates their competitive relevance [5][11]. - The airline has recently announced the discontinuation of several routes, including cities like Albuquerque and San Diego, effective the week of October 2 [7]. - Spirit's leadership maintains that the airline is focused on competition and operational excellence, despite the challenges it faces [11].

Core Viewpoint - United Airlines CEO Scott Kirby predicts that Spirit Airlines is likely to go out of business, stating that the discount airline model is no longer viable [1][2]. Company Summary - Spirit Airlines filed for Chapter 11 bankruptcy protection for the second time in a year, indicating ongoing financial struggles [2]. - The airline's first attempt at restructuring did not yield sufficient changes, leading to weaker customer demand and high operational costs upon its emergence from bankruptcy in March [2]. Industry Summary - The discount airline model, once considered profitable, is now viewed as obsolete according to industry leaders [1][2]. - Kirby's confidence in his prediction is based on his analytical skills, suggesting a data-driven approach to assessing the airline's future [2].

By Doyinsola Oladipo, Allison Lampert and David Shepardson WASHINGTON (Reuters) - A war of words between United Airlines and ailing Spirit Airlines executives escalated on Tuesday after the Chicago-based airline's chief questioned the bankrupt discounter's business model and expressed doubts if it could stay in the industry. Minutes later, Spirit responded. In a post on X, the Florida-based carrier said its customers love low fares and its premium product offerings. "Maybe that's why United executives ca ...

Core Insights - United Airlines is capitalizing on Spirit Airlines' financial difficulties by expanding its presence in key markets where Spirit operates, such as Fort Lauderdale, Orlando, and Las Vegas [1] - Spirit Airlines has filed for its second bankruptcy protection and is reducing its operations, which presents opportunities for competitors [1][7] Company Actions - Spirit Airlines has discontinued service to 11 US cities, including Portland and San Diego, and has canceled plans to launch service to Macon, Georgia [2] - United Airlines will begin selling tickets for new flights to 15 cities where Spirit operates, and will utilize larger aircraft on routes between Chicago and New York LaGuardia to facilitate connections [3][5] Market Dynamics - Frontier Airlines has also responded to Spirit's challenges by introducing new routes, including 20 flights to Spirit's strongholds and an additional 22 routes to the Caribbean and Latin America [6] - Analysts expect that both United and Frontier will benefit significantly from Spirit's operational downsizing, despite having less direct competition [6]

Spirit Airlines is ending service in a host of U.S. cities this fall as it fights for survival. Its rivals, meanwhile, are circling its customers, and one is preparing for the possibility the budget travel icon shuts down altogether.United Airlines on Thursday put on sale a slew of new flights in cities where Spirit operates, like its home base of Fort Lauderdale, Florida, and Orlando, Florida, as well as Las Vegas, Houston and Chicago."If Spirit suddenly goes out of business it will be incredibly disruptiv ...