Spirit Airlines’ abrupt closure on Saturday has left passengers scrambling. And the skyrocketing fuel prices that helped bring about Spirit’s end are wreaking havoc on the rest of the industry. Shanelle Kaul reports.
– Now to the shutdown of Spirit Airlines, the low cost carrier died this weekend as it lived– with lots of frustrated customers, no one picking up the phones and passengers scrambling nationwide. CBS’ Shanelle Kaul is at Newark Liberty with more on the fallout. Shanelle?
– Jericka, it’s been a turbulent weekend for aviation here at Newark and across the country. The shutdown of Spirit Airlines, the first American airline to collapse in 25 years, causing chaos and confusion for travelers.
– It’s just been a mess.
SHANELLE KAUL: Spirit Airlines passengers frustrated after all flights were abruptly cancelled this weekend.
– The affordableness that I was enjoying is now gone away.
SHANELLE KAUL: This now unemployed Spirit pilot who was set to retire got a ride home and send-off from Southwest.
– Very overwhelming. I can’t thank you all enough.
SHANELLE KAUL: Airline industry analyst Henry Harteveldt.
– Spirit’s problems were Spirit’s problems. It is not endemic of the ultra-low-fare airline model.
SHANELLE KAUL: Other airlines, including rival budget carrier JetBlue, are now looking to acquire some or all of Spirit’s gates at its Fort Lauderdale home base in a race to win over Spirit’s low-budget flyers. Do you think it will be chopped up into pieces and sold for parts?
– I think that Spirit is probably worth more dead than alive.
SHANELLE KAUL: Why it failed? Republicans blame the Biden administration for blocking Spirit’s plan to merge with JetBlue. Democrats and the airline CEO point to skyrocketing jet fuel costs. But the result? Expect to pay more to fly. Airlines now forecast to pay $24 billion more for fuel this year. Some, already adjusting profit expectations; others, facing possible financial disaster.
– Airlines that don’t have large cash balances that are operating, if you will, a hand to mouth? They’re the ones that are going to be the most financially challenged.
SHANELLE KAUL: Also, challenged travelers paying 15% more than when the war with Iran began. Some are now rethinking their summer getaways.
– I hope that there’s another option that people will lean towards that just fits their budget.
– So how bad is it? Budget carrier JetBlue has not earned a profit in six years. And American, which had projected a profit this year, says it could now lose money. Jericka?
– Shanelle Kaul, reporting from Newark.