ToplineThe jet fuel crisis was the straw that broke Spirit Airlines’ back, but other budget airlines are also struggling to be profitable and losing market share—a potential warning for cost-conscious travelers, aviation experts tell Forbes.The self-service check-in kiosks of Spirit Airlines stand idle at its Fort Lauderdale-Hollywood International Airport hub after the company announced it was ceasing operations. (Photo by GIORGIO VIERA)AFP via Getty ImagesKey FactsLow-cost carriers—including Allegiant, Frontier, JetBlue, Southwest, Spirit and Sun Country—combined for 35.5% of market share in February, down from 38.2% a year earlier, according to Cirium data.Spirit flew 1.7 million passengers in February—a 24% year-over-year drop, per Cirium.Spirit had not turned a profit since 2019, and other budget carriers—including JetBlue and Frontier—were also unprofitable in 2025.“Everybody is burning cash—we just had a smaller pile to start with,” Spirit Airlines CEO Davis told The Wall Street Journal, adding, “[Other airlines] are not that far behind us in the race.”Transportation Secretary Sean Duffy on Saturday told reporters he opposed a government rescue for low-cost airlines seeking $2.5 billion in relief from high jet fuel prices, noting the carriers have “access to cash” and calling the government “a ​lender of last resort.”Jet fuel was $4.13 a gallon Friday on the Argus U.S. Jet Fuel Index—up 65% since the U.S. and Israel launched initial airstrikes against Iran more than nine weeks ago.Did High Jet Fuel Prices Kill Spirit Airlines?If not for surging fuel costs, Spirit’s plan to exit its second bankruptcy in less than a year would have worked, Davis told The Wall Street Journal. But industry experts say fuel prices were simply the final nail in Spirit’s coffin. “There is no one reason that resulted in Spirit’s demise,” Savanthi Syth, an aviation analyst at Raymond James, wrote to investors, pointing to “a combination of exogenous events,” industry shifts and poor management decisions. Why Did The Government’s Bailout Of Spirit Fall Through?The government had been in advanced talks to rescue Spirit for $500 million in exchange for the right to take a 90% stake in the airline, but Spirit’s creditors objected to government negotiators’ insistence on being paid back first. “If the government had foisted that deal upon them, that would be a precedent-setting situation,” Larry Perkins, CEO of the restructuring and interim advisory firm SierraConstellation Partners, told Forbes. The failed deal was unpopular with some industry analysts—and conservative critics. “It’s not the government’s fault that budget airlines aren’t able to necessarily run their businesses as well as other carriers,” Henry Harteveldt, president of Atmosphere Research Group, a travel market research and advisory firm, told Forbes. “Why should American taxpayers bail them out? That’s free market enterprise.” A political advocacy group founded by former Vice President Mike Pence issued a policy paper urging against a rescue plan, writing that “bailing out Spirit creates the expectation that American taxpayers, at the whim of politicians, will bail out other struggling airlines.” Sen. Ted Cruz, R-Texas, called rescuing Spirit “an absolutely TERRIBLE idea,” adding, “the government doesn’t know a damn thing about running a failed budget airline.”Will Spirit Airlines’ Failure Impact Airfares?“We don't want to see the loss of low-cost airlines because when there’s more competition, the winner is the consumer,” James Ferrara, CEO of InteleTravel, a network of over 120,000 travel advisors, told Forbes, noting that budget airlines are often the best financial choice for travelers. “Low-cost airlines keep airfares lower and they keep the legacy carriers honest,” Katy Nastro, spokesperson for the airfare deal-finding app Going, told Forbes, adding that routes where Spirit flew in larger markets helped bring fares down 14%, on average. “This is not good for the cost-conscious traveler, especially if you are in a Spirit market,” she said.Some Airlines See Risk, Others See OpportunitySpirit had a 3.9% share of market in February, down from 5% the prior year. But looking forward to the second and third quarters of 2026, Spirit accounted for only about 1.9% of seat share, Syth wrote in her note to investors. While Spirit’s demise may be seen as a warning sign, especially for budget airlines, some see an opportunity to grow. On Monday morning, JetBlue announced an expansion that includes 11 new destinations from Fort Lauderdale-Hollywood International Airport, Spirit’s largest hub. “Spirit’s jets weren’t even cool yet, and JetBlue moved into Fort Lauderdale to stake its claim, and Breeze Airways is looking to expand in Atlantic City,” Nastro said. TangentMore than 40,000 people have reportedly pledged nearly $27 million to rescue and nationalize Spirit Airlines after a TikToker’s joke went viral.Further ReadingSpirit Airlines’ Creditors Think Trump Rescue Deal Is Untenable (Forbes)Trump’s Airline Went Under 35 Years Ago—But He Could Rescue Others (Forbes)Trump Reportedly Nearing $500 Million Bailout For Spirit Airlines (Forbes)