Why the collapse of Spirit Airlines means higher fares for everyone
The collapse of Spirit Airlines removes a low-cost carrier that helped keep fares down, and industry observers expect prices to rise. The average price of a domestic airline ticket in the U.S. increased 24% between Jan. 5 and April 20, compared with a 3% increase during the same time frame last year.
Spirit Airlines' collapse removes a decades-old carrier that helped set the floor for cheap flights. The airline was selling rock-bottom tickets, such as a $25 one-way ticket from Atlanta to Fort Lauderdale, Fla., until the end. Airlines have pledged to help stranded Spirit customers by temporarily capping fares, but industry observers expect prices to rise. The average price of a domestic airline ticket in the U.S. increased 24% between Jan. 5 and April 20. Spirit's exit from routes led to a 23% average fare increase, according to the airline. The 'Spirit effect' kept fares down, and its demise is expected to lead to higher costs for travelers.
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