Not a great month for the folks at Spirit Airlines. First they get shot at:
...then they go under (financially speaking):
Spirit Airlines, whose approach to selling cheap tickets without amenities earned it fans and detractors, filed for bankruptcy protection on Monday after a string of setbacks, most recently a failure to renegotiate its looming debt.
"Without amenities" is right. The company is known for cheap flights, which is not a bad thing. They're also known for:
Extra fees for everything from checked bags to seat assignments
Basic seats are uncomfortable and cramped
No in-flight entertainment or Wi-Fi
It's a pretty stripped-down experience, no doubt about it:
That's arguably not what drove the company into Chapter 11, however. Cheap, cramped flights are not great, but we can tolerate them if the planes are on time and we get where we need to go, which Spirit arguably delivered on.
Rather, a number of other factors appear to have driven the filing:
The airline, which last reported an annual profit in 2019, has had trouble finding its footing after a federal judge blocked a planned merger with JetBlue Airways in January. Spirit has also struggled to capitalize on the recovery from the pandemic because of intense competition, engine problems and other factors.
The company doesn't look to be going anywhere in the near future. It said customers can "use all tickets, credits and loyalty points as normal," while the CEO said its bankruptcy move demonstrates "a strong vote of confidence in Spirit and our long-term plan."
Though it was originally the butt of many jokes for its stripped-down service, the company drove a lot of change in the industry, as today "most U.S. airlines offer some version of a no-frills ticket."
The company also "pressur[ed] others to lower fares," driving rates ever-lower in the airline industry.
Good luck, Spirit Airlines. We wish you well. 😬
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