HOUSTON – Travelers are already paying more for flights after the shutdown of Spirit Airlines, with early data showing fare increases on routes the ultra low-cost carrier once served.
Parag Amin, a business attorney and analyst with the Law Offices of Parag L. Amin, said prices on former Spirit routes are up about 14% on average in the days following the airline’s shutdown.
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“Unfortunately, the answer is probably,” Amin said when asked whether travelers should expect higher prices.
Spirit Airlines ceased operations over the weekend after filing for bankruptcy twice in the past two years. The airline built its business model around offering the lowest fares in the market, often undercutting major carriers.
That pricing strategy created what analysts refer to as the “Spirit effect” — downward pressure on ticket prices across competing airlines.
“Spirit was an ultra low-cost carrier, so they always competed on price,” Amin said. “All of the carriers are, to some extent, in competition with each other.”
When Spirit operated on a route, larger airlines often lowered fares to remain competitive and attract price-sensitive travelers, he said.
Now, with that low-cost competitor gone, airlines have more flexibility to raise prices.
“They’re looking at it and seeing it as an opportunity to be able to raise their prices,” Amin said.
The increase is already being seen on routes Spirit frequently served, including popular leisure destinations. Families planning summer travel could feel the impact most.
“They’re likely to see higher prices,” Amin said, citing both the loss of low-cost competition and the seasonal demand as summer approaches.
Booking closer to travel dates typically results in higher fares, creating what Amin described as a “double whammy” for consumers.
Federal court filings previously showed Spirit marketed fares roughly 30% lower than competitors on some routes, forcing other airlines to adjust pricing.
While airlines cannot legally coordinate prices, Amin said they can independently respond to market conditions and competitors’ pricing.
Industry factors, including fuel costs, could also influence how high fares rise in the coming months. Amin said prices may stabilize once the market adjusts to Spirit’s absence.
Spirit’s shutdown follows a failed merger attempt with JetBlue in 2024 that was blocked by the U.S. Department of Justice and a federal court on antitrust grounds.
“That was part of the demise of Spirit,” Amin said. “It was a lifeline that it lost.”
The long-term impact on airfare remains uncertain, but early trends suggest travelers should expect higher costs, particularly on routes once dominated by budget carriers.