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The immediate cause was rising fuel prices. The other issue sounds like it was poorly ran. More generally, it is also a low cost carrier at a time when, after
by matwood 6mo ago
The immediate cause was rising fuel prices. The other issue sounds like it was poorly ran.
More generally, it is also a low cost carrier at a time when, after years of competing on price, airlines are seeing people willing to pay more for a better experience. All other carriers are expanding their premium options, catering to the affluent part of the K economy (for the first time ever the majority of Delta revenue came from premium cabins over main). Meanwhile, Spirit was dealing on the other side of the K who is also most impacted by increasing inflation, etc... giving Spirit zero ability to raise prices.
- gib444 6mo ago> Meanwhile, Spirit was dealing on the other side of the K who is also most impacted by increasing inflation, etc... giving Spirit zero ability to raise prices. Ryanair (Europe's biggest and most profitable airline) is managing it OK [0] What's difference about that side of the K in the USA vs Europe? [0] https://www.bbc.co.uk/news/articles/c620506dvmjo https://www.bbc.co.uk/news/articles/c620506dvmjo
- matwood 6mo agoI can't speak for the EU, but this article was interesting. It sounds like a big part of it is that Ryanair's costs were simply less to start. https://onemileatatime.com/insights/why-spirit-fail-ryanair-thrives/ https://onemileatatime.com/insights/why-spirit-fail-ryanair-...
- gib444 6mo agoThanks for sharing. Interesting how fuel isn't mentioned once (other comments here have suggested it's mostly to do with fuel). Only possibly indirectly via cost per air seat mile (CASM), but AIUI airlines frequently exclude fuel from that IMO Spirit's bad business decisions should be acknowledged.