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An unsustainable price floor, apparently. Which suggests that it’s not the appropriate floor price, unless Spirit crashed for reasons unrelated to airport / pla
by altairprime 6mo ago
An unsustainable price floor, apparently. Which suggests that it’s not the appropriate floor price, unless Spirit crashed for reasons unrelated to airport / plane / gate operations costs?
- verzali 6mo agoThe sudden rise in fuel prices due to the Iran war seems to be at blame. If you have thin margins and didn't hedge, then a shock like that can wipe you out. Probably won't be the last.
- altairprime 6mo ago‘Didn’t hedge’ because they set the price below the resilience floor and couldn’t; or because they paid out the good times to shareholders instead of resilience; or..?
- wlonkly 6mo agoIt might've been the straw that broke the camel's back, but they've been unprofitable since the pandemic.[1] Mainline airlines introducing "basic economy" fares that weren't as no-frills as Spirit seems to have been a contributor. [1] https://theaircurrent.com/airlines/spirit-airlines-trump-administration-bankruptcy-bailout-jetblue/ https://theaircurrent.com/airlines/spirit-airlines-trump-adm...