Competition is moving into Spirit’s markets. These 2 are the biggest beneficiaries

Published 08/09/2025, 18:44
© Reuters.

Investing.com -- Spirit Airlines’ Chapter 11 bankruptcy filing has opened the door for rivals to move into its markets, with Bank of America analysts highlighting Frontier Group and United Airlines as the biggest beneficiaries.

“Since Spirit’s Chapter 11 bankruptcy filing on 8/29, carriers such as ULCC and UAL have begun to position themselves to take share,” BofA wrote, adding that the process “will continue as Spirit cuts service to smaller airports and could aim to retrench at the airline’s top airports.”

Spirit accounts for only 3.6% of total U.S. domestic capacity in 2025, but its network is heavily concentrated. 

BofA explains that Fort Lauderdale, Orlando, Las Vegas, Detroit, and Newark represent 40% of flights, while the top 25 airports cover 83%. On its routes, Spirit holds just 17% market share, compared with legacy carriers’ 70%.

BofA said, “LUV and ULCC are Spirit’s top competitors with 40% and 35% of domestic route overlap in 2H25, respectively, while the network carriers compete on 28% of Spirit’s routes on average.” 

But it emphasised ULCC’s particular exposure: “ULCC is most exposed to Spirit on their routes with 27% of ULCC’s routes flown by Spirit, 12 points higher than the next airline (JBLU).”

As Spirit pulls back, rivals are stepping in. “Competition for Spirit’s share has already begun, with ULCC and UAL announcing new routes and additional flights into Spirit’s top airports (Fort Lauderdale, Orlando, Las Vegas) as well as airports that Spirit recently exited,” BofA said.

With potential for a further 20% reduction in capacity, BofA expects competitors to accelerate their expansion into Spirit’s markets.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.