Spirit Airlines, the carrier famous for neon-yellow planes and rock-bottom fares (plus fees for basically everything else), might be nearing its final descent. In a recent filing, the Florida-based airline admitted there’s “substantial doubt” it can keep flying beyond the next year. Translation: Spirit is in serious financial turbulence.
That’s not just bad news for Spirit’s employees and passengers—it’s bad news for everyone who likes cheap flights. For decades, Spirit’s no-frills model has forced big airlines like Delta, United, and American to slash their prices to compete. Even if you’ve never set foot on one of Spirit’s famously cramped seats, you’ve probably benefited from the “Spirit Effect.”
Why spirit matters, even if you never fly it
Scott Keyes, CEO of the flight-deal site Going.com, summed it up perfectly: “Even for folks who never would fly Spirit, you owe them a debt of gratitude for cheaper flights.” When Spirit shows up in a market, fares drop by an average of 7% to 11%, according to a federal judge who reviewed its business model during JetBlue’s failed takeover bid in 2024.
But Spirit hasn’t been able to turn low prices into profits. Since emerging from bankruptcy in March, the company has racked up a $256.7 million loss. Revenue is down 20% from last year, and to cut costs, Spirit has already reduced its flight schedule. That’s had an immediate effect on ticket prices: when Spirit exits a route, fares often jump. Between Denver and Fort Lauderdale, ticket prices rose 22% after Spirit stopped flying there.
Can spirit pull up before hitting the ground?
Spirit’s CEO Dave Davis insists the airline isn’t doomed. In a note to employees, he emphasized that Spirit is “a critical part of the U.S. aviation industry” and highlighted that its presence keeps airfares in check nationwide. The company is working on new initiatives to stay afloat—but investors aren’t convinced.
And even if Spirit does survive, it might not stay independent for long. Other airlines are circling, eyeing Spirit’s valuable fleet and coveted slots at crowded airports like LaGuardia and Newark.
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What happens if Spirit gets bought?
Here’s where things get messy. If a major carrier like United, Delta, or American buys Spirit, antitrust regulators might step in again. The JetBlue-Spirit merger was blocked earlier this year for exactly that reason—fewer competitors means higher prices for travelers.
A deal with another budget airline, like Frontier, might face fewer legal hurdles. But Frontier is also losing money, and negotiations over a fair price have already stalled once. In other words, Spirit’s future could involve a merger, but it won’t be easy—or cheap—for anyone involved.
Fewer airlines, higher fares—simple math
Passenger advocates warn that whether Spirit goes bankrupt or is acquired, travelers will likely pay more. “There’s never been a merger where the new entity continues to fly on every route and with the same number of flights,” says William McGee of the American Economic Liberties Project. “Mergers lead to higher fares.”
Even airlines that don’t directly raise ticket prices could quietly reduce the number of cheap “basic economy” seats available, nudging travelers to pay more. Fewer low-cost options mean less pressure on the big players to stay competitive.
Turbulence ahead for your wallet
If Spirit disappears, air travel could get more expensive across the board. The airline has been the thorn in the side of legacy carriers, forcing them to keep prices low, and without it, there’s little incentive for anyone to offer truly bargain fares.
So next time you see a screaming-yellow jet taxiing down the runway, you might want to whisper a quick “thank you.” Spirit Airlines may not have free snacks, wide seats, or even a complimentary carry-on, but it’s been quietly saving every traveler in America money—whether you fly it or not.
