Frontier, airline stocks fall as Spirit nears Trump administration rescue deal

Southwest Airlines Co

22/04/2026 19:31

** Shares of Frontier Airlines' parent Frontier Group ULCC.O drop as much as 13% on Weds after report that low-cost carrier rival Spirit Airlines nearing rescue deal with the Trump administration

** U.S. government set to lend Spirit, which is struggling to exit bankruptcy, as much as $500 mln in exchange for warrants to take a potential stake in the carrier, the Wall Street Journal reported

** Other airlines also extended losses after the news: United Airlines UAL.O now down >6%, Southwest Airlines LUV.N 4%, Delta Air Lines DAL.N >2%, JetBlue JBLU.O >6%

** ULCC and UAL last year added routes in scramble to grab market share from ailing Spirit

** UAL late Tues forecast Q2 and full-year profits below Wall Street estimates as higher jet fuel prices squeeze margins and cloud its near-term outlook

** S&P 1500 airlines index .SPCOMALI down nearly 4% on the session, stretching YTD loss to ~10%

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))