Low-Cost Carriers Struggle to Stay Afloat Amid Rising Costs and Fierce Competition
Fla. News Network — In a significant blow to the aviation industry, two Florida-based airlines, Spirit Airlines and Silver Airways, have filed for Chapter 11 bankruptcy. As the airline industry continues to recover from the aftermath of the COVID-19 pandemic, rising fuel costs, and increased competition, the demise of these low-cost carriers raises questions about the sustainability of the low-cost model and the future of affordable air travel.
Passengers of these airlines may face disruptions, including potential cancellations and changes in flight schedules, during the restructuring phase. However, each airline’s long-term viability will depend on its ability to adapt to changing market conditions and consumer demands. Spirit Airlines, founded in 1983 as Charter One Airlines, had grown to become America’s largest ultra-low-cost carrier, serving over 50 million passengers annually before the filing. Silver Airways, established in 2011 from the assets of Gulfstream International Airlines, operated as an essential regional connector serving smaller Florida markets and Caribbean destinations.