Spirit Airlines helped popularize the ultra-low-cost carrier (ULCC) model in the U.S., offering low fares while charging extra for services once included in ticket prices, such as checked bags and seat selection.
This approach reshaped the airline industry and was eventually adopted by major carriers like American, Delta, and United, which began offering basic economy tickets with similar restrictions.
Times have changed. And at least for Spirit, not for the good. The air carrier’s announcement this week of fleet reductions, according to the New York Times, is a sliver of the big picture Spirit is facing.
While Spirit thrived for years—reporting profits from 2007 until the pandemic—rapid expansion and increased competition have placed the airline under increasing levels of financial pressure.
Rising operating costs, including higher wages for pilots and mechanics industry-wide, have compounded challenges. Spirit’s growth also brought it into direct competition with both major carriers and other discount airlines.
Spirit filed for bankruptcy protection for the second time in under a year on August 29. The airline has announced plans to furlough one-third of its flight attendants, reduce routes, and cut its fleet by 40 percent, ending leases on 87 of 214 aircraft.
These measures follow the collapse of a previous sale to JetBlue and ongoing operational issues, including engine problems and significant debt.
Frontier Airlines, another ULCC, faces similar pressures but remains in slightly better financial shape, reporting modest profits in recent years.
Other smaller carriers, such as Allegiant and Sun Country, continue to find niches by flying less-competitive routes, focusing on leisure travelers, or supplementing revenue with charter and cargo services.
Industry analysts note that ultra low-cost carriers now account for only about 11 percent of U.S. domestic seats, while the four largest airlines—American, Delta, United, and Southwest—control nearly 79 percent.
While Spirit and similar carriers helped transform the industry, their rapid growth, combined with rising costs and intensified competition, has made sustaining profitability increasingly difficult.
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