Spirit and Frontier Merger Fallout: What It Means for Ultra-Low-Cost Airfares

The saga of America’s budget airlines has been a major corporate rollercoaster over the last two years. First, Frontier and Spirit planned to join forces to create a massive discount airline. Then, JetBlue stepped in with a higher bid to buy Spirit, only to have a federal judge block that exact deal in January 2024. Now, both Spirit and Frontier are operating independently and scrambling to change their business models to survive. If you are planning domestic travel this summer, these major corporate shakeups will directly impact how much you pay to fly.

The Blocked Mergers and the Current Reality

To understand summer airfares, you have to look at how these airlines are responding to their failed deals. When the Department of Justice successfully blocked the JetBlue and Spirit merger, it forced Spirit to figure out a standalone path forward.

Spirit Airlines has faced significant financial struggles since the ruling. The company has dealt with heavy debt and is currently dealing with a massive recall of Pratt & Whitney engines. This engine issue has forced Spirit to ground dozens of its Airbus planes. With fewer planes in the sky, Spirit has fewer seats to sell.

Frontier Airlines is also shifting its strategy. Instead of focusing entirely on aggressive expansion to compete with Spirit, Frontier is trying to attract a different type of customer and improve its public image. Both airlines realize that the old model of selling a $19 ticket and charging $60 for a carry-on bag is no longer working as well as it used to.

The End of the Traditional Budget Model

The biggest fallout from these failed mergers is the sudden death of the traditional ultra-low-cost carrier model. To win back customers and compete with larger airlines like Delta and United, both Spirit and Frontier have introduced massive pricing changes for 2024 and beyond.

Both airlines recently eliminated most change and cancellation fees. This is a massive shift that gives travelers far more flexibility. Furthermore, both companies have moved away from bare-bones pricing in favor of distinct bundled fare classes.

Frontier’s New Pricing Tiers:

Basic: The classic budget fare. You get a personal item, but you pay extra for seat assignments and carry-on bags.
Economy: Includes a carry-on bag and a personal item.
Premium: Includes a carry-on, a personal item, and premium seat selection.
Business: Includes all the above, plus two checked bags and an empty middle seat for guaranteed extra space.

Spirit’s New Pricing Bundles:

Go: The standard stripped-down fare with just a personal item.
Go Savvy: Adds either a carry-on or a checked bag, plus standard seat selection.
Go Comfy: Includes an aisle or window seat with a blocked middle seat, a carry-on bag, a checked bag, and early boarding.
Go Big: The premium experience. It includes Spirit’s “Big Front Seat,” all baggage allowances, premium snacks, and complimentary alcoholic beverages.

What This Means for Summer Domestic Airfares

So, how does all of this impact your summer vacation budget? You can expect a few specific trends when shopping for flights this season.

Base Fares Will Likely Increase

The days of seeing widespread $15 or $25 base fares across the country are ending. Because Spirit and Frontier are bundling their services and offering more upfront value, the initial price you see on Google Flights or Expedia will likely be higher than in previous summers. However, your total trip cost might actually drop if you normally pay for bags and seat assignments. A $69 bundled ticket is often cheaper than a $29 ticket with a $50 carry-on fee added at the end.

Less Competition on Key Routes

Both airlines are cutting unprofitable routes to save money. Frontier has heavily reduced its flights out of traditional leisure markets like Las Vegas and Orlando. Instead, Frontier is adding routes in higher-fare markets to avoid direct competition with larger airlines. Spirit has also pulled back on routes from cities like Denver. When budget airlines leave a route, larger carriers like American or United no longer feel the pressure to keep their Basic Economy prices artificially low. If Spirit stops flying your preferred summer route, expect the remaining airlines to raise their prices.

Tighter Seat Supply

High demand for summer travel combined with reduced seat capacity means planes will be very full. Because Spirit has grounded planes due to engine maintenance, there are simply fewer cheap seats available in the domestic market. If you are flying to high-demand summer destinations like Florida, Southern California, or national park hubs, you will need to book earlier than usual to secure a low price.

How to Score Cheap Flights Now

To navigate this new pricing structure, you have to change how you compare tickets.

First, always compare the final bundled cost. If you are looking at a flight on United Airlines in Basic Economy, remember that United charges extra for a carry-on bag on those specific tickets. If you compare that to a Frontier “Economy” ticket which now includes a carry-on bag, the budget airline might offer a significantly better deal.

Second, set price alerts early. Because capacity is constrained, last-minute summer deals will be incredibly rare this year. Use tools like Google Flights to track specific dates, and book your flights at least 45 to 60 days before your summer departure.

Frequently Asked Questions

Did Spirit and Frontier actually merge? No. Frontier and Spirit originally announced a merger plan in early 2022. JetBlue then made a higher offer for Spirit, which Spirit accepted. However, a federal judge blocked the JetBlue and Spirit merger in January 2024 over antitrust concerns. All three airlines remain independent.

Why did Spirit and Frontier eliminate change fees? Both airlines eliminated change fees to stay competitive. Legacy carriers like Delta, United, and American permanently dropped domestic change fees during the pandemic. Spirit and Frontier needed to match this consumer-friendly policy to attract flyers who were tired of rigid rules and hidden penalties.

Are budget airlines still cheaper than Delta or United? Generally, yes, but the price gap is closing. While a base fare on Spirit might be cheaper than a standard ticket on Delta, you have to compare the exact features. Legacy airlines offer Basic Economy tickets that compete directly with budget airlines. You must compare the final price after adding bags and seat selection to know which airline is truly cheaper for your specific trip.

Will Spirit Airlines go bankrupt? Spirit has faced intense financial pressure following the blocked JetBlue merger and ongoing engine issues. The company has engaged in talks to restructure its debt and has explored various financial options to stay afloat. While the airline is actively flying and selling tickets, its long-term financial structure remains a major focus for Wall Street analysts.