Spirit Airlines Files for Bankruptcy Protection

Delta and United Airlines have emerged as the most profitable U.S. airlines by focusing on premium customers and capturing budget-conscious travelers, putting pressure on low-cost carriers like Spirit Airlines, which has filed for bankruptcy. Experts warn that Spirit's struggles may lead to fewer budget travel options and higher prices as other discount airlines, though more stable, still lag in recovery from the pandemic. Frontier Airlines and ultra-low-cost carriers are expected to fill any gaps left by Spirit, maintaining some competition to avoid significant price increases. Spirit has lost over $2.2 billion since 2020, while Frontier has been unprofitable since 2019. United's CEO criticized the low-cost airline model as flawed, reflecting growing concerns about the viability of budget airlines amid rising costs. As wages increase and premium offerings gain popularity, airlines are adapting their strategies, with Delta planning to enhance its premium services significantly.