Spirit Airlines has officially collapsed after years of financial struggles, with analysts saying poor customer service and management issues were the airline’s biggest downfall.
Industry experts say rising jet fuel prices linked to tensions in the Middle East only accelerated problems that had already existed for years.
Spirit had reportedly not turned a profit since before the COVID-19 pandemic and had repeatedly warned investors about concerns over its ability to remain in business.
Before shutting down operations, the airline was undergoing its second bankruptcy process, selling aircraft, airport gates and cutting jobs in an effort to survive.
Analysts say the airline’s ultra low cost strategy ultimately backfired because many passengers disliked the stripped down experience and extra charges for services such as carry on bags, snacks and seat selection.
Spirit also faced criticism for tight seating arrangements and limited legroom, factors that contributed to low customer satisfaction scores.
Travel analyst Michael Taylor of JD Power said there will always be a market for cheap airlines, but consumers still expect a basic level of comfort and service.
Aviation consultant Mike Boyd said Spirit relied too heavily on low fares without providing a flight experience passengers wanted to repeat.
The airline attempted to reinvent itself after the pandemic by introducing larger front row seats and bundled packages that included baggage, Wi-Fi and snacks, but experts say many travelers were unconvinced.
Despite Spirit’s collapse, analysts believe the budget airline model itself is not dead. Other low cost carriers such as Allegiant Air and Breeze Airways continue to perform better with customers while maintaining affordable fares.
Experts expect airfare prices to rise in cities where Spirit previously held a large market share, including Fort Lauderdale, Detroit and Las Vegas.
A trade group representing remaining discount airlines has reportedly requested a US$2.5 billion bailout from Congress and the Trump administration as fuel prices continue to climb.
Analysts say Spirit’s collapse signals that airlines can no longer survive by offering low fares alone, and customer experience has become increasingly important in the competitive aviation industry.
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