Delta and United have transformed their business strategies by focusing on premium sectors and budget travelers, leading to substantial profits while squeezing out smaller low-cost carriers.
Spirit Airlines' filing for bankruptcy indicates potential challenges for budget travelers, as industry experts suggest their choices may diminish, leading to higher fares in the future.
Though other discount airlines like Frontier and Allegiant Air are financially healthier than Spirit, they still face challenges in recovering from the COVID-19 pandemic, performing worse compared to full-service airlines.
Scott Kirby, United's CEO, criticized the business model of low-cost carriers, suggesting that their approach is flawed and that customers have negative experiences flying with them.
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