Spirit Airlines is dead

The high fuel costs and the demand destruction from what looks like a global depression I imagine made this unsalvageable.
 
What happens to people who paid for a ride they never got?

Obviously they need a new arrangement but what about the money and does a credit card buy help?
 





Aakash Gupta

@aakashgupta



Spirit Airlines stops flying at 3 a.m. Saturday. The DOJ blocked the $3.8 billion JetBlue acquisition two years ago to preserve competition.Spirit pioneered ultra-low-cost flying in America. In 2007 they unbundled the base fare and sold the bag, the seat, the snack, and the boarding priority as separate line items. By 2017 ancillary revenue hit $53 per passenger, up from $5 in 2006. The math worked. In 2009 Spirit posted a 15.9% operating margin, the highest in the US airline industry.Then Delta copied them.In 2012 Delta launched basic economy. American and United followed in 2017. Three legacy carriers with global route networks, lounges, loyalty programs, and co-branded credit cards now offered a Spirit-style fare with one extra perk: miles. Ancillary went mainstream. Spirit's pricing wedge collapsed.By 2022 Spirit needed a merger. JetBlue offered $3.8 billion all-cash. Shareholders accepted.The DOJ sued in March 2023 to block it. The argument was that eliminating "the Largest Ultra-Low-Cost Rival" would raise fares. Federal Judge William Young blocked the deal in January 2024. He wrote: "Spirit is a small airline. But there are those who love it."Eight months later Spirit filed Chapter 11. Five months after emerging, Spirit filed again. Two bankruptcies in eighteen months. $1.2 billion in annual losses.The Trump administration offered $500 million Friday. Bondholders balked. Talks broke down Friday night.The DOJ saved Spirit from JetBlue. The threat was Delta.
 
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