MIAMI – Yesterday, Frontier Airlines (F9) went public under a new symbol, previously reported as $FRNT and now changed to $ULCC.
The new symbol stands for the business model F9 follows. $ULCC will compete against $SAVE – Spirit Airlines (NK) and $ALGT – Allegiant Airlines (G4).
30 million Shares
In F9’s second attempt on the NYSE, shares will start out at US$19 per share with 30 million shares up for offer. F9 is looking to raise between US$570m and US$600m. F9’s plan for the money includes buying additional equipment, invest in sales and marketing, repay debt and shore up its cash reserves.
Frontier is the last of the nation’s 10 largest airlines to go public and the second to do so this year following Sun Country (SY) after a long drought of Airline IPO’s. Mesa Airlines (YV) was the last airline to go public in 2018 with the last major airline to go public being Virgin America (VX) which was acquired by Alaska Airlines (AS) in 2016.
Leisure Travel Up, Business Travel still lagging
An uptick in domestic travel has prompted many of the largest US airlines, including the American LE3 (American Airlines (AA), Delta Air Lines (DL), and United Airlines (UA)) to revamp large parts of their networks to serve more leisure destinations, in the process adding many destinations not normally served.
United’s domestic leisure business has nearly recovered from the pandemic decline, Chief Executive Officer Scott Kirby said Wednesday at a US Chamber of Commerce aviation event.
Frontier has over 100 Airbus A320 family aircraft and has orders for 156 more for delivery by the end of 2028. It has a focus on leisure over 100 destinations throughout the United States and 31 international destinations in the Caribbean, and Central America.
The carrier has key operations in Denver, Orlando, and Las Vegas and employs more than 3,000 staff.
Featured image: Michael Rodeback/Airways