Spirit Airlines built a model the industry copied. Then it collapsed


Spirit Airlines, the scrappy discounter that once rattled the industry with cheeky ads and rock-bottom fares, took its final flight after 34 years of upending the business of flying.

Once worth as much as roughly $5.5 billion on the stock market, the airline known for its bright yellow planes said Saturday it had shut down after its final flight departed from Detroit and landed safely in Dallas.

“For more than 30 years, Spirit Airlines has played a pioneering role in making travel more accessible and bringing people together while driving affordability across the industry,” CEO Dave Davis said in a statement.

The announcement comes after two bankruptcy filings in as many years that allowed Spirit to repay lenders. That was followed in recent months by a final, mad-dash scramble to save money by cutting routes, squeezing concessions from unions and pursuing a potential financing deal with the Trump administration that could have provided a lifeline had it panned out.

But in the end, higher jet fuel prices triggered by the Iran war drained cash from the business at an accelerating pace, forcing it to call it quits.

“This is tremendously disappointing and not the outcome any of us wanted,” Davis said.

From chartered tours to unbundled fares

It began as Charter One Airlines, which ran vacation tours in the early 80s, then grew in popularity and profits two decades later with no-frills “unbundled” fares allowing travelers to forgo basic services — bag handling, seat selection, even the printing of tickets — or pay extra.

Proudly penny-pinching and irritatingly so for many passengers, Spirit was for years run by the famously frugal Ben Baldanza, who ordered his burgers plain, bristled at paying extra for pickles he didn’t want, and flew in the same cramped seats as his customers. He was unapologetic about the airline’s nickel-and-diming them, saying the issue wasn’t that Spirit was cheap, but that passengers were seeing an itemized bill for the first time — and didn’t like it.

For all the complaints, though, Spirit’s model became so influential that giant airlines with decades more operating history and global destinations found they had to follow suit by slashing prices and introducing “basic economy” fares.

On its final day of operations, Spirit had safely flown more than 50,000 passengers, a company spokesperson said. The airline was also working to get more than 1,300 crew members back home. About 17,000 employees — some with more than 25 years at the airline — learned Friday they had lost their jobs, many finding out through media reports, the spokesperson said.



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