Frontier Airlines projects higher revenue per seat after Spirit collapse
Updated
Updated · The Wall Street Journal · May 5
Frontier Airlines projects higher revenue per seat after Spirit collapse
14 articles · Updated · The Wall Street Journal · May 5
The carrier said Tuesday it expects a 3% to 5% rise in revenue for each seat flown, and CEO Jimmy Dempsey told analysts the gain could be higher.
Frontier shares rose more than 9% in midday trading as executives said they would seek more fare increases this year to offset higher fuel costs.
Chief Commercial Officer Bobby Schroeter said demand has held up despite higher ticket prices, with the airline citing past route exits by Spirit as a guide to the expected benefit.
Frontier celebrates Spirit's collapse, but could the same fuel crisis make it the next airline to fail?
With Spirit Airlines gone and fares rising, is the era of ultra-low-cost travel in America now permanently grounded?