Spirit Called Itself ‘The Dollar General of the Skies’ — Then It Lost the Battle to the Major Airlines
Spirit Airlines has filed for bankruptcy twice in recent years and is now facing potential liquidation. Here’s what went wrong.
Spirit Airlines has never been particularly popular. Consumer surveys have ranked it as one of the most hated airlines in the industry. But people stuck around for the ultra-low prices that earned it the nickname “the Dollar General of the skies.” Now, the airline has filed for bankruptcy twice and is facing potential liquidation, according to NPR.
The budget carrier pioneered the low-cost model in the 2010s: strip amenities, charge rock-bottom base fares, then nickel-and-dime passengers for everything else. For a time, it worked. But then Delta, United and American copied the strategy, introducing “basic economy” fares that copied Spirit’s bare-bones experience while competing on price.
The legacy airlines had a crucial advantage: loyalty programs with co-branded credit cards and frequent flyer perks. “There are very few Spirit frequent flyer loyalists,” economist Severin Borenstein told NPR. Meanwhile, Spirit’s core customers have been squeezed by inflation, prompting them to cut back on travel. Not all is turbulent for Spirit — the Trump Administration is now considering a $500 million bailout.
Spirit Airlines has never been particularly popular. Consumer surveys have ranked it as one of the most hated airlines in the industry. But people stuck around for the ultra-low prices that earned it the nickname “the Dollar General of the skies.” Now, the airline has filed for bankruptcy twice and is facing potential liquidation, according to NPR.
The budget carrier pioneered the low-cost model in the 2010s: strip amenities, charge rock-bottom base fares, then nickel-and-dime passengers for everything else. For a time, it worked. But then Delta, United and American copied the strategy, introducing “basic economy” fares that copied Spirit’s bare-bones experience while competing on price.
The legacy airlines had a crucial advantage: loyalty programs with co-branded credit cards and frequent flyer perks. “There are very few Spirit frequent flyer loyalists,” economist Severin Borenstein told NPR. Meanwhile, Spirit’s core customers have been squeezed by inflation, prompting them to cut back on travel. Not all is turbulent for Spirit — the Trump Administration is now considering a $500 million bailout.
