Frontier swoops in after Spirit fails while rivals cut capacity | Fortune

"“Spirit's exit meaningfully alters the supply landscape,” Frontier Chief Executive Officer James Dempsey said on an earnings call last week. “We positioned ourselves over the last six to nine months on launching routes that we thought would be opportunities that come as they reduce their capacity and with the possibility that they would cease operations,” Dempsey said."

"Frontier is adding capacity into airports such as Orlando, Las Vegas and Dallas-Fort Worth, where Spirit had a large presence, according to a Bloomberg analysis of Cirium flight data. Frontier has added 3 million seats in the last week to its scheduled flying between June and September, the analysis shows."

"The strategy is to win market share and achieve economies of scale, but it's also not without risk. US airlines spent 56% more on fuel in March from the month before, and any missteps are instantly amplified."

"“Frontier operates in a market that's highly price sensitive, and with Spirit's exit, that market is underserved at the moment,” Parsons said. “They're taking a long-term view, although it's not without risk as you still need to get through the short term to survive long term."

Frontier Group Holdings Inc. is increasing capacity while many US airlines reduce expansion. After Spirit Aviation Holdings Inc. ceased operations, Frontier moved to capture market share created by the supply change. Frontier is adding scheduled seats between June and September, including at Orlando, Las Vegas, and Dallas-Fort Worth, where Spirit had a large presence. Frontier added 3 million seats in the last week, based on Cirium flight data. Frontier’s CEO said the airline positioned routes in advance to benefit from reduced capacity and potential closures. The approach aims for market share and economies of scale, but it carries risk, including higher fuel costs and the need to survive short-term execution.

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