In April 2009, headed home from an airline loyalty event, I pushed my loyalty aside for my first ride on Spirit Airlines. It was one of the carrier’s shortest flights, from Fort Lauderdale to Tampa; just 37 minutes (plus a bit of delay). I was convinced I wouldn’t make the price v value trade again. I was wrong.
Both Spirit and I changed; some good, some bad.
As of this morning, however, no one has that choice. Spirit Airlines, facing an unprecedented spike in fuel prices against the backdrop of two bankruptcy filings in less than 12 months and other challenges, halted operations early Saturday morning.
All flights cancelled. Customer service closed. Passengers holding tickets will be refunded to the credit or debit card used for purchase. Otherwise, there is nothing.
Hundreds of thousands of travelers must now find a new way home, to a customer, or to visit their family. Thousands of employees who depended on Spirit to pay their bills and provide access to healthcare must now rebuild their lives.
A Challenged History
Hating on Spirit, as I did 17 years ago, was easy. It was not a particularly comfortable on-board product, and the semi-hostile booking and travel experiences did the carrier no favors. But its existence also changed the industry.
It was an innovator in the unbundling of air travel. Spirit was the first US carrier to charge for carry-on bags, a move it made in 2010. Allegiant would follow just a few days later. This history of market behavior drove the decision to disallow JetBlue’s planned acquisition two years ago.
While the carrier remained focused on its unbundled, low cost operations it was somewhat successful. There were profitable years and growth and potential. But also challenges. Allegiant chipped away at Spirit’s efforts from the U/LCC angle, while legacy airlines and upstarts came at it from the other side. Basic economy fares and unbundling became the norm for the US market, leaving the carrier with fewer unique competitive angles to play.
Ch-ch-ch-changes
Spirit managed to change some of the negatives around its inflight experience. Inflight Wi-Fi eventually joined the fleet, as did seats better designed for the tighter pitch layout the carrier favored. While my knees were jammed into the seat in front of me at 30″ pitch in 2009, later trips at 28-29″ pitch left me with space at my shins.
A revamp of the loyalty program sought to attract more premium – and more consistent – business. Maybe it did a bit, but the limited schedules (bad for business travel) and route map continued to prove a challenge.
Ch-ch-ch-challenges
There were also challenges outside of its control. COVID-19 hit the entire industry. As an airline more focused on the lower end of the market, where the competition is of passengers staying home rather than choosing a different airline, Spirit struggled more than others. There was a pivot to premium, attempting to capture some of the upper bar in the K-shaped growth of the US economy. But that’s a hard sell after so many years actively campaigning otherwise. And also not especially well supported by the route structure and schedules. Multiple rebranding attempts failed to convince the market.
Pratt & Whitney engine issues also grounded a chunk of its fleet these past few years. There were compensation payments, but it was far from enough.
The final nail in the coffin, of course, was the spike in fuel prices thanks to the US attacking Iran and the associated closure of the Strait of Hormuz. The airline simply did not have a cash cushion to ride that out, nor a means to raise additional funds on the open market. The absurdist idea of a government bailout evaporated.
And so did the airline’s operations.
A Reconsideration
It took me six years to get past my “never again” phase with Spirit. I flew the carrier to Dallas in 2015, positioning for the inaugural Delta A220 flight back to New York City. It was cheaper in the Big Front Seat than others were offering in economy class. In 2018 that pricing imbalance popped up again when I needed a last-minute trip from Florida to New Hampshire. My wife and I flew in the Big Front Seats from Orlando to Boston and drove to Dover for a whirlwind weekend of real estate fun, including finding the home we now live in. We flew back on JetBlue. Price and schedule made more sense that way.
My tenth and final flight on Spirit was last fall, amidst the JetBlue 25for25 challenge. My flight was delayed out of JFK, causing me to miss an onward connection in Tampa. I was scheduled to overnight in Fort Lauderdale and Spirit has a seat available to make that hop, far easier and cheaper than booking a one-way rental car or otherwise rebuilding my weekend of travel.
It was another 30ish minutes in the air, mirroring my first flight with the airline 16 years prior. It was a far more pleasant experience, too. But the airline simply couldn’t make the financials work.
Recovery Options
Spirit was scheduled to operate 55,000 seats on Saturday and another 76,000 on Sunday. All told, 880,00 seats were scheduled in the next two weeks. That’s a lot of passengers displaced. Other airlines will step in to help, though in very different ways.
JetBlue, jilted as an acquirer (though almost certainly a good thing in retrospect), will offer $99 rescue fares through Wednesday for displaced Spirit passengers. It will also cap all Blue Basic fares from Fort Lauderdale and San Juan at $299 through 8 May. Passengers must call 800-JETBLUE for bookings.
New routes are coming at Fort Lauderdale, with 17 daily flights added on 9 July, covering five existing Blue Cities (BNA, DW, IAH, ORD, PSE) and two new (or newly reopened) ones (CLT, BWI).
United Airlines will cap fares in most cases through 16 May, the longest window of any of the offers. It is also making the bookings available online, more convenient for more travelers than the others.
Southwest Airlines is also offering rescue fares through May 6th on overlapping routes. They can only be purchased at the departure airport. Southwest chose a tiered structure based on travel distance, ranging from $200-400.
American Airlines issued a statement saying it wants to help, though it provided scant few details, instead encouraging passengers simply to search for new tickets on its website.
Frontier is using Spirit’s collapse as a marketing opportunity, pitching a $199 GoWild pass “to support travelers affected by Spirit Airlines’ end of operations, helping customers maintain access to low fares.” The carrier is also running a promo sale for the coming week, with 50% off base fares with a 21-day advance purchase or 10% off trips closer to departure. Anything is better than nothing, but it is certainly not much.
Similarly, Allegiant is offering 50% off, but as a rebate in loyalty points, not an immediate benefit to travelers.
I did not grab a pack of Buzzballz last night, the homage I considered to the end of the era. I probably won’t tonight, either. Ironically, perhaps, for the same reason I got over my hate of Spirit many years ago. We all can grow up and change a bit, often for the better, if we want.
Also, some thoughts from Barry Biffle on the shutdown.
More of Spirit’s Path to Collapse
- Spirit Pushes Premium Pivot for Bankruptcy Exit
- Spirit to Sell 20 A320s, Stripping WiFi Systems
- Spirit Returns to Chapter 11
- Spirit Airlines to restructure debt under Chapter 11 protection
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