11:06 AM EDT, 09/02/2025 (MT Newswires) -- Frontier Group ( ULCC ) is best positioned to benefit the most from Spirit Aviation's ( FLYY ) restructuring due to the companies' network overlap, Deutsche Bank said in a note Tuesday.

Spirit Aviation ( FLYY ), parent company of US budget carrier Spirit Airlines, said late Friday that it has filed for Chapter 11 bankruptcy, the second time in a year after its previous restructuring failed.

Deutsche Bank analysts said Frontier and Spirit's network overlap, currently at 35%, is expected to increase to about 40% by the December quarter after Frontier adds 20 new routes, 18 of which Spirit already serves.

Since most of Spirit's debt is tied to its aircraft and related costs, it's likely the airline will end up with a smaller fleet, the analysts said. Spirit currently has 214 aircraft, but is only using 157, while 38 are grounded due to engine issues and 19 are being sold, the note said.

"Based on management commentary around potential aircraft savings per the bankruptcy filings, we would not be surprised to see the active fleet shrink by another [about] 50 aircraft," analysts said.

Deutsche Bank upgraded Frontier Group ( ULCC ) to buy from hold, with $8 price target.

Shares of Frontier rose past 15% in recent trading Tuesday.

Price: 5.68, Change: +0.78, Percent Change: +15.82