"“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. For decades, low-cost carriers thrived by offering fares that traditional airlines often couldn't match without losing money. But that edge has weakened as the “big three” - American, Delta and United - got better at tailoring prices to different travelers, and as JetBlue, Southwest and other airlines that long positioned themselves as less expensive alternatives began chasing higher-paying customers."
Spirit Airlines shut down and a lawyer apologized to customers who might now be priced out of air travel. The airline’s demise comes amid higher airfares and fees tied to rising jet fuel costs connected to the Iran war. Economic uncertainty also reflects inflation and intense competition across commercial aviation. Low-cost, no-frills carriers face pressure from volatile fuel prices and reduced pricing advantages. Traditional airlines offset fuel costs through premium cabins, loyalty programs, corporate travel, add-on charges, and pricing algorithms. Dynamic pricing has reduced structural advantages for low-cost carriers. Major U.S. airlines have improved tailoring prices to different travelers, while other budget carriers have increasingly targeted higher-paying customers.
Read at ABC7 Los Angeles
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