Airline Class Wars Intensify in 2026
- Here's a breakdown of the key information from the provided CNBC article excerpt, focusing on airline news:
- * Bankruptcy: Spirit Airlines is in its second bankruptcy in less than a year, facing challenges after a blocked JetBlue acquisition, engine groundings, and rising costs.
- * Assigned seating: Southwest is ending its decades-long open seating policy ("cattle call") on January 27, 2026, and will begin using assigned seating.
Here’s a breakdown of the key information from the provided CNBC article excerpt, focusing on airline news:
Spirit Airlines:
* Bankruptcy: Spirit Airlines is in its second bankruptcy in less than a year, facing challenges after a blocked JetBlue acquisition, engine groundings, and rising costs.
* Future Uncertain: Industry analysts predict Spirit will likely not remain independent, with a merger or liquidation (Chapter 7) being the most probable outcomes.
* Potential Merger Partner: Frontier Airlines is considered the most likely merger partner, having attempted to combine with Spirit sence 2022. Negotiations are currently ongoing.
Southwest Airlines:
* Assigned seating: Southwest is ending its decades-long open seating policy (“cattle call”) on January 27, 2026, and will begin using assigned seating.
* New Fees & Revenue: Southwest has introduced new fees, including baggage checks (a first for the airline), generating significant revenue.
* Stock Performance: Southwest’s stock has performed exceptionally well,being the top-performing U.S. passenger airline stock in 2025, with a nearly 23% increase. It outperformed Delta,United,and the overall airline index.