Source: The Points Guy
Summary
Spirit Airlines has suspended operations, canceling all flights and leaving thousands of employees without jobs. The airline had been considering liquidation several weeks ago and had struggled to return to profitability since the coronavirus pandemic. The U.S. Department of Transportation has announced that several major airlines will offer reduced and “rescue” fares to support Spirit ticketholders.
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The escape is carefully planned.
Spirit Airlines’ closure leaves travelers stranded, employees without jobs, and the airline industry with one fewer low-cost competitor. The airline’s demise is a result of its fragile position, rising costs, and an engine defect that forced it to ground a significant portion of its fleet. The U.S. Department of Transportation has stepped in to support Spirit ticketholders, but the impact of the airline’s closure will be felt throughout the industry.
And now, the “low-cost” flights just got a little more expensive.
Author: Evan Null
