UNITED Airlines announced it is adding new flights to 15 U.S cities, including key destinations served by recently bankrupt Spirit Airlines.
Las Vegas and Orlando are two of the new hotspots on offer this winter.
Spirit Airlines has declared bankruptcy twice in less than a year[/caption]
The timing of United’s announcement came just days after Spirit entered Chapter 11 bankruptcy over Labor Day Weekend.
United also took a bold step and named and shamed Spirit directly in its public statement.
This is the second time Spirit Airlines has filed for bankruptcy in less than one year.
The struggling airline will continue operations, but acknowledged that it didn’t make enough progress during its first bankruptcy in 2024 to establish a business.
Among the destinations United is adding service to are Las Vegas, Orlando, and Fort Lauderdale—major markets for Spirit.
“If Spirit suddenly goes out of business it will be incredibly disruptive, so we’re adding these flights to give their customers other options if they want or need them,” said Patrick Quayle, United’s senior vice president of global network planning.
Spirit responded by reaffirming its commitment to ongoing operations.
“We have every expectation to continue serving our guests for many years to come,” said Spirit spokesperson Duncan Dee.
“While we appreciate the obsession certain airline executives have with us, we’re focused on competing and running a great operation.”
“Suggesting anything else is wishful thinking on the part of a high-cost airline looking to eliminate a low-cost competitor so they can fulfill their ultimate goal of charging American travelers the highest fares possible.”
New Orleans, Atlanta, Baltimore, Miami and Columbia are some of the destinations that United will be flying to.
United will start selling tickets on Thursday for the new flights.
Similar moves have occurred in other industries—for example, when competitors stepped in during Toys R Us’ bankruptcy in 2018, or when Barnes & Noble acquired Borders’ intellectual property in 2011.
This latest bankruptcy leaves Spirit without a merger or sale deal in place, despite earlier failed acquisition attempts involving JetBlue and Frontier.
Aviation expert and bankruptcy attorney Hooman Yazhari told Axios that Spirit is likely to seek a buyer as part of this new bankruptcy process.
Credit ratings agency Fitch downgraded Spirit’s long-term rating from CCC- to D on Thursday, citing a heightened risk of liquidation.
“Spirit has assured customers that operations will continue as normal but still faces the risk that customers may opt to book with other carriers, thus accelerating the company’s cash burn,” Fitch said in its report.
The agency noted that Spirit has limited remaining assets to monetize and is facing ongoing losses, making it difficult to secure further support from creditors.
While a second bankruptcy typically increases the likelihood of liquidation, several major airlines, including United itself, have filed for Chapter 11 in the past and survived.
Still, this moment marks a critical juncture for Spirit Airlines as it attempts to navigate a second restructuring in less than a year.
Spirit Airlines bosses say they expect the company to serve customers for ‘years to come’[/caption]
United Airlines flight expansion destinations
Orlando (from Houston, Chicago, Newark)
Las Vegas (from Houston, Chicago, Los Angeles)
New Orleans (from Houston, Chicago)
Atlanta (from Houston)
Baltimore (from Houston)
Miami (from Houston)
Fort Lauderdale (from Chicago, Newark)
Columbia, SC (from Newark)
Chattanooga, TN (from Newark)
