Spirit Airlines Is Gone and Your $200 Budget Flight May Be Next
Up, up, and away?
RIP, Spirit Airlines. The budget air travel service of the skies shut down services this spring and now frugal travelers are left wondering: Will the $200 flight be next? Between rising inflation and costs soaring on just about everything, how likely is it that affordable airfare is gone for good?
Here are some signs that your era of traveling for an ultra-low-cost might be coming to an end due to several factors.
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Budget Airfare Is Broken
According to Joe Cronin, president of International Citizens Insurance, the legacy carriers can spread those costs across premium cabins and loyalty programs generating extra revenue.
“There’s no buffer,” Cronin explained, noting that the major airlines got smarter, as well. “When Spirit and Frontier were growing, the big players largely ignored ultra-cheap routes. Now Delta, United, and American have all introduced basic economy tiers that undercut budget carriers on many popular routes, removing the one thing low-cost carriers had going for them.”
Soaring Jet Fuel Prices
Don’t look at the pump because it will break your heart, as well as your bank. At the same time, try not to check the price of jet fuel, which might even be higher.
“Fuel alone comprises about a third of the operational costs, so it's not hard to imagine why budget airlines are now struggling to appeal to their primary audience while also trying to stay afloat,” said Steven Vigor, CEO of Revigorate. “They’re implementing higher ancillary fees, increasing fares across select routes, and becoming bold in unbundling strategies.”
Rising Operational Costs
Vigor highlighted that fuel comprises about a third of the operational costs, which means “it's not hard to imagine why budget airlines are now struggling to appeal to their primary audience while also trying to stay afloat.” Now, Virgor pointed out that Spirit’s competitors are implementing higher ancillary fees, increasing fares across select routes, and becoming bold in unbundling strategies.
“At the same time, the legacy airlines learned to adopt the same pricing model that Spirit Airlines was known for,” Vigor added. “Basic economy fares are now a permanent feature, which means budget carriers have lost the pricing advantage they relied on.”
Customer Complaints at a Low
Cronin noted that the fee model that kept budget carriers afloat — including charging separately for carry-ons, seat selection, and everything short of oxygen — has eroded customer loyalty and faces regulatory scrutiny. “Passengers feel nickel-and-dimed, and the fees are starting to disappear under legal pressure,” Cronin explained.
“Travelers shopping at the $200 price point often do not realize that a delayed or canceled flight on a budget carrier rarely comes with the rebooking protections, hotel vouchers, or customer service infrastructure of a larger airline,” Cronin said.
Additionally, one disruption can cost more than the savings. “That is the hidden cost of cheap, and it is also exactly why I recommend that travelers flying budget carriers carry solid travel insurance,” Cronin added.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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