Spirit’s Collapse Casts Shadow Over US Budget Airline Sector

Spirit Aviation Holdings Inc., the Dania Beach, Florida, company both loved and reviled for its no-frills pricing, died on May 2. It was 43 years old.

Known for bright yellow planes that fans dubbed banana buses, Spirit filed for liquidation after years of losses. Its death was the result of a confluence of events, with recent jet fuel increases being the final nail in the coffin. But its problems can be traced to July 2022, when it backed out of a deal with Frontier Group Holdings Inc. and instead sought to merge with JetBlue Airways Corp.

Spirit planes at Fort Lauderdale-Hollywood International Airport on April 22.

Photographer: Eva Marie Uzcategui/Bloomberg via Getty Images

Illustration: Hunter French for Bloomberg Businessweek