Spirit Airlines Collapsed — Here's What Happens Next

Spirit Airlines has abruptly ceased operations, leaving passengers stranded nationwide. The shutdown, which occurred Saturday at 3 AM, was the culmination of years of financial struggles, including two bankruptcy filings within a year. An eleventh-hour bailout attempt involving $500 million from the government, which could have granted the government a 90% stake, failed due to disagreements between bondholders and the government. Other airlines, such as American, Delta, United, Southwest, Frontier, and JetBlue, have capped fares for stranded Spirit passengers to help them reach their destinations. JetBlue, in particular, is expanding its schedule significantly, especially from Fort Lauderdale. The absence of Spirit, a major discount carrier, is expected to impact airfare prices across the country, potentially leading to increased fares due to reduced competition and rising jet fuel costs. Experts anticipate further industry consolidation, as high fuel prices disproportionately affect low-cost carriers. Larger airlines with robust loyalty programs offer a financial cushion that smaller airlines lack. Many travelers, like one first-time flyer seeking the cheapest option, were unaware of Spirit's impending shutdown.