What Went Wrong With Spirit Airlines?

Spirit Airlines filed for bankruptcy in November after facing numerous challenges coming out of the pandemic, including supply chain issues and weak sales.

Spirit Airlines struggled with supply chain issues, weaker than expected sales, and grounded jets, affecting its profitability since 2019.

Spirit Airlines is known for its low-cost business model, offering bottom fare prices, charging for extras like bags and water, and driving down airfare prices through competition.

The pandemic led to record numbers of passengers returning, but also caused shortages of new planes, increased costs, and impacted growth plans, leading Spirit to struggle financially.

Spirit Airlines engaged in merger talks with Frontier and JetBlue, with Frontier announcing a $3.6 billion all-stock deal. However, challenges and court battles arose amidst merger discussions.

The low-cost airline industry has faced increased competition from legacy carriers, forcing airlines like Spirit to adapt by offering different cabin services and revenue-generating options.

Analysts expect Spirit Airlines to undergo restructuring, potentially selling aircraft and laying off employees. Merger talks could provide opportunities for growth and competition against legacy carriers.