Allegiant Air is offering a 50% rebate in rewards points to former Spirit Airlines customers who rebook flights by May 12, seeking to capture passengers left stranded by the collapse of the ultra-low-cost carrier.
The Las Vegas-based airline announced the promotion for qualifying itineraries rebooked with the code ALLWAYSTHERE. Allegiant also said it would implement a temporary fare freeze on routes that it shared with Spirit, aiming to provide a stable and affordable option for displaced travelers.
The offer follows the abrupt shutdown of Spirit Airlines on May 2, 2026, which ceased operations after failing to secure a last-ditch $500 million government bailout. The carrier, which had been in Chapter 11 bankruptcy, cited a recent spike in jet fuel prices as the final blow, leaving its 17,000 employees without jobs and canceling all flights. Spirit was a significant player in the U.S. domestic market, carrying about 1.7 million passengers in February 2026, representing 3.9% of the market according to Cirium data.
Allegiant's move positions it to absorb a portion of the market share vacated by Spirit, particularly in leisure-focused markets. Other carriers, including Frontier Airlines, American Airlines, and United Airlines, have also announced measures to assist stranded Spirit passengers, with Frontier offering a discounted summer pass and American capping fares on overlapping routes. The collapse of Spirit is expected to reduce low-cost competition and potentially lead to higher fares over time, making Allegiant's fare freeze a notable short-term relief for consumers.
This strategic move allows Allegiant to directly target a large pool of customers actively seeking new travel arrangements. The success of the promotion could translate into a significant boost in passenger numbers and revenue for Allegiant in the second quarter. Investors will be watching load factors on former Spirit routes to gauge the effectiveness of this competitive strategy.
This article is for informational purposes only and does not constitute investment advice.
