If a company’s financial health were akin to physical health, Spirit Airlines would be in intensive care on life support. The low-cost carrier filed for bankruptcy twice just this year. The situation is so dire that United Airlines CEO Scott Kirby publicly predicted on Thursday that Spirit would go out of business. It’s fair to say that the world’s second-largest airline had no reason to fear the canary-yellow planes, but there was no reason to kick the carrier as it rolled into a shallow grave.
Kirby forecasted Spirit’s death knell while speaking at the US Chamber of Commerce Global Aviation Summit in Washington, DC, according to Flight Global. The United CEO added that it’s the end for the low-cost model as a whole because not enough customers want to pay for a terrible experience. Kirby said, “You can’t have a business model that customers hate. You can’t have a business model predicated on ‘screw the customer’.” While his statements are blunt, it’s clear that the top low-cost carriers know they have to adapt to the changing landscape or die.
Spirit is throwing everything overboard to stay afloat
Spirit’s latest bankruptcy in late August signaled that it’s willing to do anything to deal with its $10 billion in liabilities to survive. The airline also announced that it’s ending service to a dozen cities next month. However, Spirit decided not to take the disparaging comments lying down and replied to Kirby on its official X account:Â
“Scott is finally right about something – it is all about customers. Our Guests love low fares, especially our new Spirit First and Premium Economy options. Maybe that’s why United executives can’t stop yapping about us.”
Spirit unintentionally proved Kirby right in its cheeky reply. Spirit is abandoning the single-class model that became ubiquitous with the champions of the low-cost model: Spirit, Frontier and Southwest. Yes, the canary-yellow carrier isn’t the only one ditching the model. Southwest Airlines decided that bags won’t fly free anymore while also adding assigned seats with a premium section. The Houston-based airline is essentially trying to ascend to the level of its mainline rivals, American, Delta and United. People simply don’t want to be lured in with a cheap ticket only to be nickel-and-dimed to death anymore.
