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  4. Frontier is slashing fares to as low as $19 in a preemptive strike at JetBlue's new merger agreement with Spirit

Frontier is slashing fares to as low as $19 in a preemptive strike at JetBlue's new merger agreement with Spirit

Taylor Rains   

Frontier is slashing fares to as low as $19 in a preemptive strike at JetBlue's new merger agreement with Spirit
  • Frontier Airlines is offering 1 million seats for $19 one-way in a "blockbuster sale."
  • The offer comes as Spirit Airlines accepts JetBlue Airways' merger bid.

Frontier Airlines is already taking jabs at JetBlue Airways over the Spirit Airlines merger.

On Wednesday — the day the merger agreement between Frontier and Spirit was terminated — the Denver-based low-cost giant sent customers an email offering 1 million seats as low as $19 one-way. Per the carrier's terms and conditions, tickets must be purchased by 11:59 p.m. eastern time on August 1 and used by October 5. Prices are "valid for domestic non-stop travel, on Tuesday, Wednesday, and Saturday."

The "blockbuster sale" comes as JetBlue and Spirit announced a planned merger after a months-long battle between the three carriers.

Frontier initially made a bid for Spirit in February, but JetBlue made a competing offer and eventually won out, positioning JetBlue to become the fifth-largest airline in the US.

In Frontier's email, the company acknowledged its failed merger with Spirit, but said that despite that the carrier will still be a strong low-cost competitor in the US.

"Frontier will remain America's lowest-fare, lowest-cost airline, with the youngest, most fuel-efficient fleet, providing you with safe, reliable, and affordable travel – now at even lower prices," the carrier said.

While Frontier lost the fight against JetBlue, Henry Harteveldt, travel analyst and president of Atmosphere Research Group, told Insider that Frontier's presence as a large low-cost player may put pressure on JetBlue to keep fares low.

"JetBlue could adapt certain pricing strategies that Spirit has been successful in using and apply those discount strategies to JetBlue flights, he said. "So, it's possible JetBlue could become an even larger discount airline than it already is."

Harteveldt also said other budget airlines with a presence in the eastern US could impact fares.

"If Breeze continues to grow in the eastern US, Breeze and Frontier could serve as price leaders and put pressure on not only a combined JetBlue and Spirit to keep their airfares down, but also other airlines as well," he said.

Third Bridge analyst Christopher Raite echoed Harteveldt; however, he emphasized in a statement to Insider that the merger will accelerate the "JetBlue effect" that will force legacy airlines, like Delta and United, to keep fares low amidst the strong low-cost competition.



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