Spirit Airlines is considering filing for bankruptcy protection due to rising labor and fuel costs, which is indicative of wider struggles within budget airlines.
Falling profits for budget carriers could lead to increased ticket prices, and cost-cutting measures like ticket fees as airlines adjust to heightened operational expenses.
The planned merger with JetBlue fell through in March, aggravating Spirit's financial issues, leading to a reported net loss of $192 million in Q2.
Airline analyst Neil Glynn noted that increasing labor costs have become 'not absorbable by the quality of its network,' showcasing the operational challenges for ultralow-cost carriers.
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