According to The Sun , Consumers are facing the prospect of higher airfares and fewer options following Spirit Airlines’ bankruptcy filing, with experts predicting price increases of up to 20%. Spirit filed for bankruptcy on November 18, citing more than $1 billion in debt, just ahead of the busy holiday travel season.
The U.S. Transportation Security Administration (TSA) reports that the days surrounding Thanksgiving, especially the Wednesday before and the Sunday after, are among the busiest travel days of the year. With Spirit’s financial struggles, experts say budget travelers may feel the impact as the airline’s collapse reduces competition, leading to fewer flight options and higher prices.
Spirit, a low-cost carrier, has faced significant losses, with over $3 billion in debt. Recently, it disclosed that its revenue was $61 million lower, and its third-quarter profit margin had dropped by 12% compared to last year. The airline’s efforts to cut costs include selling planes and furloughing over 300 pilots, with 20 aircraft set to be sold, potentially raising $500 million.
Travel expert Jesse Neugarten, founder of Dollar Flight Club, warned that the collapse would result in increased fares, especially on routes previously served by Spirit. He compared it to the 2019 shutdown of Wow Air, which led to a significant rise in transatlantic flight prices. Neugarten anticipates an average fare increase of 15 to 20% on affected routes.
Spirit’s business model, which combines low ticket prices with extra fees for additional services, helped it grow rapidly. However, the airline has struggled with rising costs and stiff competition from larger carriers. Spirit has not posted a profit in five of the last six quarters, leading to its financial downfall.
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In a harsh critique of the airline industry, Spirit’s CEO Ted Christie called out the state of the market, claiming that “the Big Four” carriers—American Airlines, Southwest, Delta, and United—are dominating the industry and benefiting at the expense of consumers. Christie stated that the U.S. airline industry has become a “rigged game,” with smaller carriers like Spirit scrambling to restore profitability.
As Spirit Airlines faces its uncertain future, travelers are urged to expect higher fares and fewer options as the impact of the collapse ripples through the industry.
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