Days after Spirit Airlines shut down in the middle of the night, a lawyer for the defunct budget carrier stood before a bankruptcy judge and apologized to the price-conscious customers who might struggle to find affordable flights in its absence.
“We apologize most specifically to those Americans who may now be priced entirely out,” Spirit lawyer Marshall Huebner said in court, thanking all the passengers who relied on the airline during its 34-year run, many of whom, he said, “could not otherwise have afforded air travel.”
Spirit’s May 2 demise is not the only curveball confronting people planning trips a week before the summer travel season has its traditional U.S. launch on Memorial Day. Rising jet fuel costs tied to the Iran war have pushed up airfares and associated fees across the commercial aviation industry. Two of the remaining U.S. budget carriers just finalized a merger.
The uncertain outlook for economical air travel reflects how difficult it has become for low-cost, no-frills airlines to operate while squeezed by volatile fuel prices, inflation and increasingly fierce competition. While budget airlines appeal to customers motivated by fare prices alone, traditional carriers can more easily generate revenue to offset fuel costs through premium cabins, membership rewards, corporate travel programs, add-on charges and pricing algorithms.
“Dynamic pricing has taken away one of the last structural advantages that low-cost carriers had,” said Shye Gilad, a former airline captain who now teaches at Georgetown University.