The decline of budget airlines in the U.S.: Spirit's bankruptcy signals a shift in the industry

Summary

The article analyzes the decline of the budget airline model in the U.S., using Spirit Airlines' bankruptcy as a key example. It argues that low-cost carriers are struggling to compete with legacy airlines like United and Delta, which have successfully leveraged loyalty programs, premium offerings, and operational advantages. The piece suggests that the era of ultra-low-cost carriers may be ending permanently, leaving American travelers with fewer affordable options. The failure is attributed not to fuel costs but to broader structural issues in the airline industry business model.

Source

bskyThe decline of budget airlines in the U.S.: Spirit's bankruptcy signals a shift in the industrycnbc.com