An Analysis Of The Price War Between American And Spirit Airlines

An Analysis Of The Price War Between American And Spirit Airlines by Whitney Tilson Summary American Airlines rolled out an aggressive price-matching strategy in June that has impacted Spirit’s pricing and revenues. This is the major factor that has caused Spirit’s stock to be cut in half this year. With 62% higher costs, I question how long American can continue this strategy. I suspect it is more likely to be a warning to Spirit to pursue growth in markets not served by American. If so, it makes me even more bullish on Spirit’s stock. In my article earlier this week,…