Every airline is Spirit Airlines now
Spirit Airlines has ceased operations after years of financial struggles, culminating in flight cancellations and abandoned check-in kiosks at airports. Despite its reputation for poor service and numerous fees, Spirit's ultra-low fares pressured other airlines to lower prices, creating what the industry calls the 'Spirit effect.' As legacy carriers adopted similar cost-cutting strategies, Spirit could not sustain operations amid rising fuel and labor costs.
- ▪Spirit Airlines filed for bankruptcy twice within nine months and sought a $500 million bailout from the Trump administration, which was not granted.
- ▪The airline pioneered high-margin revenue from optional services like paid carry-ons and in-flight purchases, a model described by McKinsey as generating 'incremental revenue at relatively high margins.'
- ▪A 2017 study found that airline fares were about 20% cheaper in markets where Spirit or another low-cost carrier operated.
- ▪The Trump administration blamed President Joe Biden for blocking JetBlue’s acquisition of Spirit, which could have altered the airline’s fate.
- ▪Legacy airlines have adopted Spirit’s low-cost tactics, introducing basic economy fares and charging for amenities, reducing the competitive edge Spirit once had.
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Today, Explained newsletterEvery airline is Spirit Airlines nowHow Spirit changed the way we travel.by Caitlin DeweyMay 5, 2026, 11:00 AM UTCShareGiftSome analysts predict that the closure of Spirit Airlines will push other airlines’ fares up. Giorgio Vera/AFP via Getty ImagesCaitlin Dewey is a senior writer and editor at Vox, where she helms the Today, Explained newsletter.This story appeared in Today, Explained, a daily newsletter that helps you understand the most compelling news and stories of the day. Subscribe here.Anyone booking on Spirit Airlines kind of knew they were taking their flight into their own hands. America’s original ultra-low-cost airline has been on death’s door since the pandemic.First, it tried to merge with JetBlue.
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