Although Spirit was a small airline, it had a sizable impact on airfares across major markets in the U.S. Now that it has shut down, industry experts say to expect more airfare increases compounded by high fuel costs.
In just the span of two months fuel costs are up more than double since the start of the Iran war, according to new data from the Department of Transportation.
Frontier is looking to absorb some of Spirit’s demand and expand in markets like Orlando, Fort Lauderdale, Dallas-Fort Worth, and Detroit — all of which are former Spirit strongholds.
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.
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.
New Frontier CEO James Dempsey wants to take the carrier back to its low-cost roots, saying that saving on costs will lead Frontier to a more sustainable path.
In 2026, expect more of the same for the airline industry — analysts think the premium boom will most likely continue and the ultra-low-cost carriers could flounder.