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Spirit Airlines Is Winding Down All Operations

spiritrestructuring.com

41–50 of 111 posts

Re: Spirit Airlines Is Winding Down All Operations

#42
post #33

Why did Spirit die? Was there any last of this that had to do with their abysmal customer service?

Airlines are not great business. Margins are not great. Fuel is significant part of their operating costs. And if it goes up too much in too short time the whole model breaks. Less margins you have the more you will be impacted. So if you are operating at edge by default fast move in costs will destroy you.

Re: Spirit Airlines Is Winding Down All Operations

#44
post #2

Too bad. Capitalism working as it should and no last minute government bailouts for failing companies. The market should decide and determines winners and losers, not the government. So compete.

Man wouldn’t it be great if we lived in that world?

Re: Spirit Airlines Is Winding Down All Operations

#48

This process may seem ugly, but just like biological death is necessary for an ecosystem, this sort of death/restructuring is essential for capitalist economies. Assets and capital get reallocated to better uses. It's all part of the circle of life.

Comment is made after May 1st, international strike day.

Re: Spirit Airlines Is Winding Down All Operations

#49

Can someone explain to me (a non American) which niche or segment was Spirit in (and perhaps why they , and not any other airline, are shutting shop)?

Low cost carrier. Think Ryanair. Competition from the rest of the market and bad management put them in a bad position, with the most recent war causing unsustainable fuel issues. Other airlines may be able to double/triple their prices in the short term. Spirit's customers may simply choose to not fly.

https://www.npr.org/2026/05/02/nx-s1-5807933/spirit-airlines... describes this in more detail.

Re: Spirit Airlines Is Winding Down All Operations

#50
post #42
post #33

Why did Spirit die? Was there any last of this that had to do with their abysmal customer service?

Airlines are not great business. Margins are not great. Fuel is significant part of their operating costs. And if it goes up too much in too short time the whole model breaks. Less margins you have the more you will be impacted. So if you are operating at edge by default fast move in costs will destroy you.

IAG in 2025 had a record operating margin of 15.1%.

Ryanair's gross profit margin for fiscal years ending March 2021 to 2025 averaged 19.1%.

Some are (were?) doing just fine - in Europe at least.

Sure, it's no Big Tech or banking, but it's not like the single low digit percentage of eg retail.

Perhaps some USA airlines need some advice from across the pond?

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