How Spirit Airlines created a model that the industry copied and, 34 years later, went bankrupt

Spirit Airlines, the embattled US low-cost airline that shook up the industry with bold announcements and ultra-low fares, has flown its last flight after 34 years of revolutionizing the airline market. Previously valued at around US$5.5 billion on the stock market, the airline known for its bright yellow planes announced this Saturday, 2, that it had landed safely in Dallas.

“For more than 30 years, Spirit Airlines has played a pioneering role in making travel more accessible and bringing people together, while driving accessibility across the industry,” CEO Dave Davis said in a statement.

The announcement comes after two bankruptcy filings in two years, which allowed Spirit to settle its debts with creditors. That was followed in recent months by a frantic and desperate scramble to save money, cutting routes, extracting concessions from unions and seeking a possible funding deal with the Trump administration that could have served as a lifeline had it worked out.

But ultimately, higher jet fuel prices, brought on by the war with Iran, drained the company’s cash at an accelerated pace, forcing it out of business. “This is extremely disappointing and not the outcome any of us wanted,” Davis said.

From package tours to unbundled fares

It all started with Charter One Airlines, which organized package holidays in the early 1980s; Two decades later, the company grew in popularity and profits thanks to its no-frills “unbundled” fares, which allowed travelers to forgo basic services – baggage handling, seat selection and even ticket printing – or pay extra for them.

Proudly petty and irritating to many passengers, Spirit was run for years by the famous Ben Baldanza, known for his frugality, who ordered his burgers without sides, bothered to pay extra for pickles he didn’t want, and flew in the same cramped seats as his customers.

He was unapologetic about the airline charging every penny, saying the issue wasn’t that Spirit was cheap, but that passengers were seeing an itemized bill for the first time — and they didn’t like it.

Despite all the complaints, however, Spirit’s model became so influential that giant airlines, with decades more of operating history and global destinations, realized they needed to follow suit, drastically reducing prices and introducing “basic economy” fares. On its final day of operations, Spirit had safely transported more than 50,000 passengers, a company spokesperson said.

The airline was also working to get more than 1,300 crew back home. Around 17,000 employees – some with more than 25 years of service – learned on Friday that they had lost their jobs, many of them learning of the news through the media, the spokesperson said. In a statement sent to its members Saturday, Spirit’s flight attendants union acknowledged the airline’s demise and the impact on workers.

“While the country had fun making Spirit the butt of jokes, together we have built a force capable of resisting anything they throw at us,” the statement said. “And that’s no joke.”

The provocation manual

Despite its abrupt end, Spirit left behind a reputation that was impossible to ignore. Kendria Talton, who flew on Friday with Spirit from Dallas to Atlanta with her daughter for a dance competition, arrived at the airport this Saturday, the 2nd, trying to find a new way to get home. Talton said he had flown Spirit several times because of the price. “Other than that, I mean, nobody likes Spirit,” she said.

“Spirit has been talked about for years.” A key part of this image came from its bold and exaggerated advertisements, which some critics pointed out as being in bad taste and which, in fact, sometimes ended up backfiring. After the Deepwater Horizon disaster in 2010, the company ran an ad titled “Take a look at the oil on our beaches,” playing on the double meaning between tanning oil and real oil.

Next came the “Weiner Sale” after New York Congressman Anthony Weiner was caught up in a sexting scandal, an ad that also included the phrase “rates too hard to resist.” Later, the infamous “MILF Sale” emerged, referring to “Many Islands, Low Fares”, but also alluding, with a wink and a nod, to the sexual acronym.

Ironically, Spirit was also brought down by its own success, as more traditional airlines imitated its offering and began stealing its customers with their own low fares.

The collapse

Spirit had been struggling with losses for years, but the announcement of its closure still came as a shock. Just a few months earlier this year, Spirit said it would likely emerge from its second bankruptcy in late spring or early summer after reaching a preliminary agreement with creditors. Then, four days later, the US and Israel launched attacks on Iran, causing global crude oil prices to soar to more than $100.

Gasoline prices followed the same trend, and jet fuel prices more than doubled in some markets. Spirit faced difficulties especially during and after the Covid-19 pandemic, amid rising operating costs and worsening debt.

When it filed the first request for judicial recovery (Chapter 11) in November 2024, Spirit had already recorded losses of more than US$2.5 billion since the beginning of 2020.

University of Houston student Angelina Deruelle, 23, was at Fort Lauderdale-Hollywood International Airport on Friday, Spirit’s final day of operations, after her flight to Texas was canceled. She said the loss of the airline as an affordable travel option would be difficult to accept. “I feel like Spirit is just approachable, simple, nothing too fancy,” she said. “It’s like my home.”