Loading

US ULCCs have to prove their staying power; 2024 a pivotal year

Premium Analysis

The past two years have been eventful for ultra-low cost operators in the Americas.

Two airlines in Colombia - Viva and Ultra Air - went out of business in 2023. More recently, Canadian ULCC Lynx Air ceased operations, reflecting some of the unique challenges start-ups face in the Canadian market.

Now that JetBlue and Spirit Airlines have officially ended their quest to merge, the US ULCC Spirit must now craft a stand-alone plan in a market that has been challenging for the ultra-low cost model over the past couple of years.

Both of the US' largest ULCCs - Spirit and Frontier Airlines - have tabled plans to reverse their fortunes.

But Sprit could face more headwinds than Frontier in restoring investor confidence - given its debt burden and heightened scrutiny over the ultra-low cost model.

Become a CAPA Member to access Analysis Reports

This CAPA Premium Analysis Report is 989 words.
Become a CAPA Member

Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.

Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.

CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 1,000 News Briefs every week and comprehensive data and analysis on thousands of companies around the world.