Airline failures are an accepted part of the industry rough-and-tumble in many countries. Spirit's collapse is forcing a fresh look at the costs and benefits of America's protectionist instincts.
Spirit said it explored every possible option to stay in business, but it was left with no other choice to liquidate because it did not have a sufficient amount of cash.
Spirit Airlines is no more. The pioneer of ultra-low-cost flying in the U.S. was ultimately undone by surging fuel prices, failed bailout talks, and a model that couldn’t keep pace with a changing market. Its collapse sees 14,000+ jobs lost, reshapes competition across key routes, and presents a curious question: Who, if anyone, will fill the gap? We unpack the immediate fallout and ask what comes next in this week's issue.
Transportation Secretary Sean Duffy appeared to dismiss the idea that other budget carriers might need a bailout from the government, hours after Spirit said it would start winding down operations.
Spirit, once one of the most profitable airlines, never recovered from the pandemic and the shift to premium travel. Rival low-cost airlines are trying to take advantage — but they have their own problems.