Spirit Airlines Shuts Down After 34 Years as Fuel Shock and Competition Squeeze Budget Carriers
Updated
Updated · The Associated Press · May 18
Spirit Airlines Shuts Down After 34 Years as Fuel Shock and Competition Squeeze Budget Carriers
9 articles · Updated · The Associated Press · May 18
May 3 marked Spirit Airlines’ shutdown, and its lawyer told a bankruptcy judge the carrier’s disappearance could price some low-income travelers out of flying ahead of Memorial Day travel.
11 weeks of Iran-war disruption to Middle East oil shipments have driven up jet fuel costs, adding to inflation and intensifying pressure on low-cost airlines that rely far more on cheap fares than premium revenue.
A $2.5 billion aid request from budget carriers was rejected by Transportation Secretary Sean Duffy the day Spirit stopped flying, after larger-airline trade group Airlines for America argued support would distort competition.
Consolidation has accelerated as weaker discounters struggle: Allegiant last week finalized its roughly $1.5 billion acquisition of Sun Country, while Frontier is already expanding in former Spirit strongholds such as Las Vegas and Orlando.
Industry analysts say big carriers’ dynamic pricing and broader revenue streams have eroded the old low-cost advantage, leaving fewer budget airlines able to absorb fuel spikes and market shocks.
Which U.S. budget airline will be the next to collapse after Spirit's historic failure?
A distant war grounded a major airline. Is America's budget travel model fundamentally broken?