By Dean Seal
Shares of Frontier Airlines' parent company sank after The Wall Street Journal reported that its budget carrier rival Spirit Airlines was nearing a rescue deal with the Trump administration.
Spirit was seeking a bailout after surging jet fuel costs threatened to upend its plans to emerge from bankruptcy and put it at risk of liquidation. Spirit's collapse would eliminate one of Frontier's top competitors in the market for low-cost airfare.
Frontier shares dropped 12% by midday, and other airline stocks slid as well. Analysts have said that Spirit's liquidation would give the rest of the industry room to raise prices on their lower-tier tickets. Shares of Delta, United and Southwest Airlines fell 2% to 6%.
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(END) Dow Jones Newswires
April 22, 2026 13:07 ET (17:07 GMT)
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