It looks like Spirit Airlines will be ceasing operations effective at 3am 5/2.
I've been doing a deep dive of their financials (I am an accountant; I am actually published writing about the airline industry). I knew they were running out of cash, but the mismanagement is astonishing. Unfortunately, it all goes back to our friend COVID-19. Other airlines were saying "we should recover, get back to prepandemic levels" and Spirit decided "well, we were in a growth stage before this, let's NOT adjust that..."I replied sad because we flew Spirit to MCO all but one of our flights out of Atlantic City…the flights themselves were great, the customer service was abysmal…just like many other companies that go bankrupt, they spread themselves waaaaay too thin, gambling on a stable and improving economy. I feel sorry for the staff
Now deep dive how many stock buybacks the majors have done in between recession bailouts from the Feds since the 1980’s…I've been doing a deep dive of their financials (I am an accountant; I am actually published writing about the airline industry). I knew they were running out of cash, but the mismanagement is astonishing. Unfortunately, it all goes back to our friend COVID-19. Other airlines were saying "we should recover, get back to prepandemic levels" and Spirit decided "well, we were in a growth stage before this, let's NOT adjust that..."
You are correct that they were spread too thin. Took on wayyy too much debt, had too many aircraft (interestingly, they leased most of them...that was a bad idea), were trying to grow while losing money and not managing cash...bad. I reviewed competitors JetBlue and Allegiant for comparison sake. They are not profitable at this point (Allegiant has been subsequent to COVID) but I don't have immediate concerns about their ability to continue doing business.
I accurately called this months ago. I told members here on DMs "hey, no one book Spirit." I told family members who I knew had booked Spirit not to book them back in December...even my mother saw the news and said "wow, you told me this would happen MONTHS ago."
People online are trying to shift the blame elsewhere...nope. This was a failure of their management. Full stop (no pun intended).
I replied sad because we flew Spirit to MCO all but one of our flights out of Atlantic City…the flights themselves were great, the customer service was abysmal…just like many other companies that go bankrupt, they spread themselves waaaaay too thin, gambling on a stable and improving economy. I feel sorry for the staff
This is not the same thing. Unless you'd like another great depression, stock buybacks occasionally have to happen. I mean, the banjo guy in American Adventure does make it look appealing...Now deep dive how many stock buybacks the majors have done in between recession bailouts from the Feds since the 1980’s…
Things are never completely cut and dry…even though spirit sucks
JetBlue already announced they're moving into Spirit's space at BWI.Been following this locally. AC airport is all but useless now.
Never flew out of there…and only two flights on spirit (phl to mco and ewr to lax)…but it will increase costs and make Philly suck even more.
There are a ton of reasons to decrease travel frequency these days…throw this shrimp on the Barbie too![]()
One of the nails in the coffin was the rising fuel costs as written by media reports and Spirit top exec.I replied sad because we flew Spirit to MCO all but one of our flights out of Atlantic City…the flights themselves were great, the customer service was abysmal…just like many other companies that go bankrupt, they spread themselves waaaaay too thin, gambling on a stable and improving economy. I feel sorry for the staff
That was the final nail…One of the nails in the coffin was the rising fuel costs as written by media reports and Spirit top exec.
Rising fuel costs sadly caused by certain events in our world affects all of us. Just like tariffs and now rising fuel costs the cost of doing business now passed onto us the consumer.That was the final nail…
The closure of Spirit Airlines is hugely consequential news for travelers to Walt Disney World, and will have ramifications even for those who fly other airlines.
Data from aviation analytics company Cirium shows that FLL and MCO had 5,168 and 3,484 Spirit flights, respectively, scheduled during this quarter. Spirit offered routes to 60 destinations from the former and 36 destinations from the latter.
Spirit Airlines was one of the largest operators at both FLL and MCO, with the airports scheduled to see 17.5% and 6.9% of the airline’s departures, respectively. Those airports accounted for nearly 25% of Spirit’s total departures.
Right…but they’re not cut anybody dealsJetBlue already announced they're moving into Spirit's space at BWI.
I imagine JetBlue was waiting for the collapse like...
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Allegiant does fly into MCO. That is only from a few cities.I’m sure Frontier and Alligiant will pick up some business as well…I love Alligiant, but the only problem is they don’t fly into MCO…
They filed for bankruptcy twice before and were denied a merger. Their business plan was not sustainable.That was the final nail…
But they managed to be in ops for 34 yearsThey filed for bankruptcy twice before and were denied a merger. Their business plan was not sustainable.
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