Spirit Airlines cut flights in 12 cities such as United, Rivals Circle


Airplanes United Airlines Takis at the Nevark Liberty International Airport, Nevark, New Jersey, 11. January 2023.

Kena Betancur | AFP | Getti images

Spirit Airlines ends the service in a multitude of US cities that fall this because it is struggling survival. In the meantime, its rivals circle its customers, and one is preparing for the possibility that the budget trip icon turns off completely.

United Airlines On Thursday, Snew new flights was placed in the cities in which the Spirit operates, like their mother base Fort Lauderdale, Florida and Orlando, Florida, as well as Las Vegas, Houston and Chicago.

“If the spirit suddenly disappears, it will be incredibly rash, so we add other options to them if they want or need them,” said Patrick Kuaile, a high-year vice president of the Global Network and the Alliance, said in the news.

The new service begins 6. January.

Last week Frontier AirlinesThe second largest budget airline in the US behind the Spirit, announced 20 new routes competing with the spirit.

Meanwhile, in October, the Spirit is published in Albuquerque, New Mexico; Birmingham, Alabama; Boise, Idaho; Chattanooga, tennessee; Columbia, South Carolina; Portland, Oregon; And Salt Lake City, as well as Oakland, San Diego, Sacramento and San Jose in California, the carrier told CNBC on Wednesday. He also included plans to start the service in Macon, Georgia, 16. October.

“We apologize to our guests for the inconvenience that can cause and will come to those affected bookings to inform them about their options, including a refund,” said the spirit in the e-mail statement. “

Some of the United’s united flights include a service between the New York area and Colombia and Chattanooga. United also adds additional flights between Houston, Chicago and Los Angeles, as well as several additional daily round options like Los Angeles in Las Vegas, and Chicago to Orlando, Fort Lauderdale, New Orleans and Las Vegas, among others.

The boundaries has the most overlaps of the seat with the spirit to 39%, while United has 18%, according to TD Covenant Analyst Tom Fitzgerald.

Several analysts said they expect the benefit of airline full of services Spirits problems. Many of these carriers have great global networks to serve customers, as well as a primary economy, without Friils competing with spirit and other low airlines.

With larger airlines “Improving products on board (premium, free wireless internet, online entertainment) and network expansion, consumers increasingly choosing network airline such as Delta And united over the spaces of historical market, “said Melius research analyst CONTOR Conningam on Wednesday.

Why Spirit Airlines is fighting

Back to court

Spirit Airlines submitted for his second chapter 11 Bankruptcy protection In less than a year last week after facing weak from expected demand and continuing high costs when it came out its earlier bankruptcy in March.

The carrier did not make more painful, deeper cuts that were common in bankruptcy, first filed and now faces that choice.

After submitting her second bankruptcy petition, the spirit said last week that they would further reduce their network and reduce their fleet, to say that it would reduce costs with “hundreds of millions” annually.

“Since it appears from our previous restructuring, which is purely reduced by funded debt, has become much more work available to the best spirit for the best position on Friday, said Dave Davis” “partial director of the Spirit on Friday.

In court in December in December, the Spirit forecasted a net profit of $ 252 million this year. But in AugustIt is said that it lost almost 257 million dollars instead of 13. March, after chapter 11, by the end of June.

The Spirit warned earlier in August that it might not be able to survive a year Unless he has significantly increased his money.

It was also said that the credit card processor requested an additional collateral. He then borrowed the entire $ 275 million available within his revolving credit facility and said the card processor could hold up to $ 3 million a day from the airline. Even before bankruptcy, the spirit planned to plan hundreds of extra pilots.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *