U.S. low-cost airlines Frontier and Sun Country plan to raise cash through initial public offerings (IPOs) as they prepare for a rebound in pandemic-hit travel
Budget carriers are expected to bounce back quicker than larger rivals from the pandemic thanks to their lower-cost structures and focus on domestic leisure travel.
Frontier Airlines, which withdrew listing plans in July, filed again on Monday, after Apollo Global Management-backed Sun Country Airlines launched an IPO to raise around $200 million, regulatory filings show.
In its IPO filing, Denver, Colorado-based Frontier said that it was “well positioned to take advantage of the anticipated demand recovery as vaccine distribution continues.”
Nearly 1.3 million people were screened at U.S. airports on Sunday, Transportation Security Administration data showed, the second-highest day in 2021 but down 40% from pre-COVID levels.
Source: Reuters
