Spirit Airlines, once a dominant player in the U. S. aviation industry, has shut down after years of financial struggles. The airline’s closure has resulted in the loss of 17,000 jobs and disrupted the plans of thousands of travelers. While its absence may have some impact on the industry, experts are unsure of the long-term effects.

Other airlines will likely benefit from Spirit’s departure, as they will have an easier time raising fares and acquiring its assets, such as gates and check-in counters at various airports. However, the impact may not be significant as Spirit had already downsized significantly and was in its second bankruptcy in two years.

Before its shutdown, Spirit operated only 3. 4% of all domestic flights in May 2024, and its schedule for May 2026 amounted to just 1. 1% of domestic flights. Its diminished presence was a major reason for the confusion around the Trump administration’s efforts to save the airline, which ultimately failed.

While some experts believe that Spirit’s absence will result in slightly higher fares over time, others argue that the impact may be overstated. Other airlines have spare seats and can cater to the customers that Spirit served. Additionally, many of Spirit’s customers were price-sensitive and may choose not to fly as often now.

The “Spirit effect” was a phenomenon studied by economists, which referred to the airline’s ability to keep fares low and force other airlines to do the same. However, larger carriers like American Airlines, Delta Air Lines, Southwest Airlines, and United Airlines have found a way to compete with Spirit by introducing “basic economy fares. ” These fares, which are cheaper than standard economy tickets, have reduced the demand for tickets from low-fare carriers like Spirit.

Some smaller airlines, such as JetBlue Airways, stand to gain from Spirit’s absence. JetBlue has been expanding at Spirit’s home base, Fort Lauderdale-Hollywood International Airport, and has recently added nonstop flights to 21 cities from there. Following Spirit’s shutdown, JetBlue announced plans to add flights to 11 more destinations from Fort Lauderdale.

Frontier Airlines, one of Spirit’s biggest competitors, is also expected to benefit. However, it faces similar challenges as Spirit did, as many of its routes also consist of basic economy seats.

The demise of Spirit Airlines has suddenly made thousands of experienced airline workers available, including pilots and mechanics. United Airlines has already begun recruiting former Spirit employees and has expressed a special interest in their applications. However, Spirit’s assets, such as planes and airport gates, will not become immediately available as they will be distributed through bankruptcy court proceedings.

In conclusion, while the shutdown of Spirit Airlines may have some impact on the industry and travelers, it is unlikely to have a significant long-term effect. Other airlines will benefit from its absence, but the impact will be limited due to Spirit’s already reduced presence in the market.