CNBC·2025-09-04 12:07Core Insights - Spirit Airlines is ceasing operations in multiple U.S. cities this fall as it struggles for survival, prompting competitors to target its customer base [1][3] - United Airlines is launching new flights in Spirit's operational cities to provide alternatives for Spirit's customers, anticipating potential disruptions if Spirit goes out of business [2][5] - Frontier Airlines is also expanding its routes, adding 20 new competitive routes against Spirit, indicating a shift in the budget airline landscape [2][5] Company Actions - Spirit Airlines will exit cities including Albuquerque, Birmingham, Boise, Chattanooga, Columbia, Portland, Salt Lake City, and several locations in California [3] - Spirit has communicated with affected customers regarding their options, including refunds for canceled reservations [4] Competitive Landscape - United Airlines is increasing its flight offerings, including routes between New York and Columbia, as well as additional flights from Houston and Chicago to various destinations [5] - Frontier Airlines has the highest seat overlap with Spirit at 39%, while United has an 18% overlap, indicating a competitive environment for budget travelers [5] Industry Trends - Analysts predict that full-service airlines will gain from Spirit's difficulties, as they offer extensive global networks and no-frills products that compete with low-cost carriers [6] - There is a trend of consumers favoring network airlines like Delta and United due to improvements in onboard services and network expansion [7]