Lousy service, not the Iran war, killed Spirit Airlines.
Spirit was doomed to fail because of mismanagement, deep financial problems, and – crucially – its reputation for poor customer service. The spike in jet fuel prices during the war just accelerated Spirit’s inevitable demise.
The airline hadn’t been profitable since before the pandemic. Spirit has repeatedly warned investors in recent years it wasn’t sure it could stay in business – well before the United States and Israel went to war with Iran.
The discount carrier was in the midst of its second bankruptcy, auctioning off planes and airport gates and cutting staff in a desperate struggle to stay alive.
Spirit’s failure is a cautionary tale for other discount airlines: Competing on price alone can be a losing strategy. But that doesn’t mean other low-cost carriers are doomed.
