Why did Spirit fail? Too many passengers hated flying it

 

Spirit Airlines jets sat on the tarmac as the company ceased operations at Fort Lauderdale-Hollywood International Airport on Saturday. 

Giorgio Viera/AFP/Getty Images

Lousy service, not the Iran war, killed Spirit Airlines.

Spirit was doomed to fail because of mismanagement, deep financial problems, and – crucially – its reputation for poor customer service. The spike in jet fuel prices during the war just accelerated Spirit’s inevitable demise.

The airline hadn’t been profitable since before the pandemic. Spirit has repeatedly warned investors in recent years it wasn’t sure it could stay in business – well before the United States and Israel went to war with Iran.

The discount carrier was in the midst of its second bankruptcy, auctioning off planes and airport gates and cutting staff in a desperate struggle to stay alive.

Spirit’s failure is a cautionary tale for other discount airlines: Competing on price alone can be a losing strategy. But that doesn’t mean other low-cost carriers are doomed.

Cheap fares alone also can’t explain Spirit’s problems – other budget carriers prove the business model can work. Airlines are first and foremost a service industry, and Spirit could not overcome its extraordinarily miserable reputation.

“A low percentage of passengers said they would fly the airline again after their most recent experience,” said Michael Taylor, senior managing director for travel, retail and customer service rankings at JD Power. “There will always be a market for airlines that offer the lowest fares possible. The question is: are they making the pizza too cheap to eat?”

Bad service

Spirit had some of highest complaints and lowest consumer satisfaction rates in the industry.

It turns out passengers didn’t like being charged for every aspect of the flight, including carry-on bags. While Spirit met the industry average for on-time flights and lost baggage, Spirit also has the smallest amount of legroom, according to travel site Simply Flying.

“Cramming people into 28-to-29-inch seat pitch is uncomfortable, period. Especially on longer-haul flights,” said airline industry consultant Mike Boyd.

The Spirit Airlines ticket counter at Detroit Metro Airport is closed down after the airline shut down overnight on May 2. 

Sarah Rice/Getty Images

Even customers hunting for the lowest base fares expect things like free snacks or soft drinks, which is standard on most other airlines.

“They stripped out so much from the experience … that the folks who ended up stuck on Spirit often kind of despised the experience” said Zach Griff, author of airline newsletter From the Tray Table. “And they often were willing to pay $30, $40 $50, even $60 more just to have better experience on a different airline.”