Frontier Airlines IPO. signals a travel industry recovery
The pandemic is far from over, but some airlines believe the travel business is already on an upswing. On Thursday, Frontier Airlines, a budget carrier that is based in Denver and known for putting images of wild animal on its planes, became the second airline this year to list its shares on a stock exchange. Before trading began, Frontier said it expected to raise $266m by selling 15m shares at $19 each on Nasdaq under the symbol ULCC, a nod to its strategy as an “ultra-low-cost carrier.” Another 15m shares will be sold by Frontier’s existing stockholders. The industry may be struggling through one of the worst crises in its history, but travel is starting to recover and carriers like Frontier and Sun Country Airlines, which finished an initial public offering in mid-March, say they are well positioned for the rebound. Unlike the largest airlines, budget carriers don’t rely on corporate or international travel, which are not expected to bounce back any time soon. Frontier and Sun Country offer domestic flights to passengers visiting family or friends or going on leisure trips, the kind who have been leading the recovery. “The time is now,” said Barry Biffle, the airline’s president and CE. “If you look, the vaccine is unlocking the demand, and you’re seeing it everywhere. You’re seeing it in restaurants, you’re seeing it in hotels.” Many investors seem to agree. Sun Country’s stock price jumped more than 40% when it hit the market a couple of weeks ago. Shares of established airlines have also rallied in recent months. Shares in Frontier, which has a $4b market capitalization, closed down less than 1% on Thursday.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2021-04-02/unaligned/frontier-airlines-ipo-signals-a-travel-industry-recovery
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Frontier Airlines IPO. signals a travel industry recovery
The pandemic is far from over, but some airlines believe the travel business is already on an upswing. On Thursday, Frontier Airlines, a budget carrier that is based in Denver and known for putting images of wild animal on its planes, became the second airline this year to list its shares on a stock exchange. Before trading began, Frontier said it expected to raise $266m by selling 15m shares at $19 each on Nasdaq under the symbol ULCC, a nod to its strategy as an “ultra-low-cost carrier.” Another 15m shares will be sold by Frontier’s existing stockholders. The industry may be struggling through one of the worst crises in its history, but travel is starting to recover and carriers like Frontier and Sun Country Airlines, which finished an initial public offering in mid-March, say they are well positioned for the rebound. Unlike the largest airlines, budget carriers don’t rely on corporate or international travel, which are not expected to bounce back any time soon. Frontier and Sun Country offer domestic flights to passengers visiting family or friends or going on leisure trips, the kind who have been leading the recovery. “The time is now,” said Barry Biffle, the airline’s president and CE. “If you look, the vaccine is unlocking the demand, and you’re seeing it everywhere. You’re seeing it in restaurants, you’re seeing it in hotels.” Many investors seem to agree. Sun Country’s stock price jumped more than 40% when it hit the market a couple of weeks ago. Shares of established airlines have also rallied in recent months. Shares in Frontier, which has a $4b market capitalization, closed down less than 1% on Thursday.<br/>
