Spirit Airlines’ exit raises airfares
Key takeaways
- The collapse of Spirit Airlines, one of the industry’s fiercest discounters, has given US budget carriers more room to lift fares, but its exit does little to fix the long-running strain on the cheap-flight model.
- The Florida-based airline ceased operations on May 2 after creditors failed to agree on a $500 million government bailout.
- The challenges that existed for discounters before Spirit ceased operations will not disappear, experts said.
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Add ARY News on Google AAResize. The collapse of Spirit Airlines, one of the industry’s fiercest discounters, has given US budget carriers more room to lift fares, but its exit does little to fix the long-running strain on the cheap-flight model.
The Florida-based airline ceased operations on May 2 after creditors failed to agree on a $500 million government bailout. Now, rivals including Jet Blue Airways and Frontier Airlines are targeting its markets while they contend with the same surging fuel costs that doomed Spirit.
The challenges that existed for discounters before Spirit ceased operations will not disappear, experts said. The post-pandemic spike in wages, rising aircraft lease costs and maintenance bills have eroded the advantages that defined the low-cost airline industry.