Here’s how Spirit, Frontier and JetBlue compare, as Spirit approaches sale or merger
Spirit Airlines’ shareholders are set to make a decision June 30 on whether to merge with Frontier Airlines, and if not the Broward County-based airline eventually could be sold to JetBlue Airways.
Although JetBlue’s offer is richer, airline and travel industry analysts question whether the New York airline’s bid would clear federal regulatory approval.
Analysts say a Spirit-Frontier merger is a more natural move, combining two ultra-low-cost carriers to compete with the dominant legacy airlines American Airlines, Delta, Southwest and United.
“Integrating Spirit and Frontier will be easier, they’re similar airlines. They’re not clones, but they are siblings,” said Henry Harteveldt, a travel industry analyst at Atmosphere Research Group in San Francisco. “JetBlue acquiring Spirit will have a lot more pieces to the puzzle, I’d estimate it would take five years or more to put all those pieces together.”
While it’ll take many months or years before Frontier or JetBlue completes a deal with Broward County-based Spirit, here’s a rundown of key items air travelers and Spirit employees should know:
HOW DO FARES COMPARE?
Spirit and Frontier offer the cheapest base fares in the sky. Tickets can be as cheap as $30 on Spirit and Frontier. JetBlue is a low-cost carrier, too, but its fares aren’t as low. The airline tries to compete with Spirit and Frontier on select routes by matching fares, but it isn’t driving down overall airline prices.
“The JetBlue transaction, from a consumer perspective, will raise airfares,” said Helane Becker, an aviation industry analyst from Cowen Investment Banking. “JetBlue has said they’d make Spirit look just like them, so they’ll remove seats for more room and increase the number of premium seats.
“The Frontier model wouldn’t require such significant changes, since they have a very similar business model. For consumers, if you want more legroom and better amenities, JetBlue is a better option. But if you want to pay less, Frontier is better for consumers.”
Regardless of how this deal goes, Becker warned higher airfares are inevitable due to inflation, fuel costs and pilot attrition levels increasing.
WHAT ABOUT EXTRA FEES AND AMENITIES?
Frontier and Spirit pack in as many passengers in the plane as they can and charge extra for everything, including water. Passengers have to pay for carry-on luggage, other than backpacks or purses that fit under seats. Those baggage fees increase depending when and where you pay them, such as online, which is cheapest, or at the airport. JetBlue also charges travelers for carry-ons that go in overhead bins. However, JetBlue offers more legroom and free amenities like Wi-Fi, TV and non-alcoholic beverages and snacks.
HOW BIG ARE THESE THREE AIRLINES IN THE U.S.?
Either a Spirit-Frontier merger or JetBlue devouring Spirit would create the nation’s fifth-largest airline. Both deals would consolidate the market, but neither combination would come close to the size of the big four airlines in the United States: American Airlines, United, Delta and Southwest. Those four airlines together account for over half the domestic airline market share. Frontier controls only 3% of domestic market share, while Spirit and JetBlue each has 5% of the U.S. air travel market.
HOW DO THEY COMPARE AT SOUTH FLORIDA AIRPORTS?
Spirit is the second-largest airline at Miami International Airport, but a distant second behind American Airlines. American flights represent 62% of total seat capacity, and it has 140 different routes, while Spirit holds 5.5% of the Miami airport’s seat capacity, serving 28 routes, according to March data.
Frontier is the No. 6 airline there, with 3.3% of seat capacity and 26 routes, while JetBlue has only five routes out of Miami, for 1.8% of seat capacity.
Fort Lauderdale-Hollywood International Airport is a different story, however. According to February data, Spirit and JetBlue are the largest carriers, with Spirit accounting for 27% of passenger traffic and JetBlue making up 21%. Frontier only accounted for 1% of passengers in February, but the airline only restarted its service at Fort Lauderdale airport on Feb. 17, after a pandemic hiatus.
WHAT ARE THEIR CUSTOMER-SERVICE REPUTATIONS?
Spirit, Frontier and JetBlue have one thing in common: unsatisfied customers. The U.S. Department of Transportation said that Spirit led the nation in consumer complaints in 2021, with JetBlue and Frontier following.
WHERE ARE THE AIRLINES’ PRIME GEOGRAPHIC MARKETS?
Spirit focuses on selling cheap fares throughout the East Coast and to Central and South America and the Caribbean, where so many South Floridians are from and have family. Frontier is based in Denver and focuses on budget flights to the West Coast.
JetBlue is based in Queens, New York, and has an East Coast focus, with New York, Boston, Orlando and Fort Lauderdale the cities where the airline has the most flights. Its routes have far more overlap with Spirit.
WHAT’S AT STAKE IN SOUTH FLORIDA?
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Spirit relocated to Miramar after leaving its Detroit headquarters in 1999. The airline employs about 3,400 people in South Florida. In 2019, Spirit said it would build a $250 million, 500,000-square-foot corporate office in Dania Beach and move 1,000 workers there. In September 2020, Spirit narrowed the scope of the project by roughly two-thirds. While it’s uncertain if Broward County would remain the home of a major airline with Frontier or JetBlue as Spirit’s partner, the revised office development is going ahead.
As for those can’t-miss bright yellow Spirit jets, they could ultimately start looking a shade of green or blue.
This story was originally published June 26, 2022 at 6:00 AM.
