Spirit Airlines was expected to be one of the big travel industry winners after the pandemic. But the no-frills pioneer never found its wings in a changed business and operating landscape. On Monday, the Florida-based carrier filed for bankruptcy protection. While speculation about Spirit's future began swirling immediately after a federal judge blocked its $3.8b merger deal with JetBlue Airways in January, analysts say its Chapter 11 filing was longer in the making. Before the pandemic, Spirit was outpacing the market, luring price-sensitive travelers and forcing larger carriers to introduce their own versions of budget offerings. The airline's business model of an integrated fleet, keeping planes flying more hours in the day and putting more seats on every aircraft, helped optimize its resources and kept costs down. Its high fleet utilization produced double-digit operating margins for nine straight years until 2020. But the global health crisis changed the operating environment and travel patterns, and Spirit struggled to adapt. Spirit's average daily aircraft utilization is down 16% this year versus 2019, fueling cost pressures. Consumer demand has shifted in favor of full-service airlines in the past two years as middle- and upper-income households were vacationing extensively, while inflation hurt lower-income spenders.<br/>
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Low-cost carrier Frontier Airlines announced it is adding 16 new routes beginning in 2025. The move expands the airline's service across the United States and Caribbean as one of its budget competitors, Spirit Airlines, contracts service after filing for bankruptcy. The new routes will launch in February and March across 21 different airports, Frontier said Tuesday. The move comes as budget airlines face increasing competition from legacy carriers, which are edging them out of some airports with their own low-cost fares for a bare bones plane ticket. And some consumers are changing their preferences for a more premium travel experience due to pent-up for travel following the pandemic, in what's been dubbed "revenge travel." Still, analysts insist, budget carriers aren't going anywhere. "There will always be startups trying to disrupt the space and they're going to try to compete because there are lots of routes these major airlines don't serve as much," said Jesse Neugarten, CEO and founder of Dollar Flight Club, a flight deals site, told CBS MoneyWatch. <br/>
Turkish operator BBN Airlines is seeking authorisation to open both passenger and cargo services to US destinations. BBN initially aims to start cargo and passenger charter operations but expand to scheduled services in both sectors. The carrier uses the main Istanbul airport for cargo flights, and the secondary Sabiha Gokcen airport, as well as Antalya, for passenger operations. BBN has nine aircraft including seven passenger jets – five Airbus A321s and two A320s – and a pair of converted A321 freighters. All the aircraft are leased except a single owned A320. BBN has filed a request for authorisation with the US Department of Transportation, claiming its proposal will increase choice and enhance competition in the US-Turkish market. The carrier was founded in 2021 and started operations in March last year, specialising in wet-lease and charters. It is 51%-owned by an Irish-based vehicle, Barbas Invest, in turn owned by Turkish citizen Umit Baskirt, while the 49% balance is held by investment entities ultimately controlled by Lithuanian interests.<br/>