Look away, Norman Greenbaum: Spirit is no longer in the sky. After two bankruptcies and a failure to strike a last-minute bailout deal with the Trump administration, the 34-year-old budget airline closed up shop on Saturday morning, and people found out the hard way. Flights were abruptly canceled, trips were called off, and 17,000 workers lost their jobs. What happens next is, ironically, still up in the air.
Fare play: Spirit’s fares were so low that they helped set a price floor for other airlines. With that tether gone, other airlines are free to raise prices. Then again, Spirit shrank so much in recent years that the impact of its loss could be limited. According to the New York Times, citing Cirium data:
- In May 2024, Spirit operated 3.4% of all domestic flights.
- This month, that number was expected to shrink to 1.1%.
Kindred spirits: Low-cost competitors (like former dance partner JetBlue) could benefit by inheriting some of Spirit’s customers, but they also face some of the same headwinds, like high fuel costs amid the Iran war. Last week, a trade group representing several budget airlines (including Spirit) cited fuel prices when they asked the government for $2.5 billion in relief.
Arrivals and departures: Demand is high in the industry for pilots and mechanics, so both Spirit’s competitors and ex-employees could end up with a silver lining.—BC
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