A moment of silence for Spirit Airlines. 

I’m Kalilah from Money Media, giving you money news for the Caribbean.

Spirit officially shut down earlier this month after years of financial trouble, and travellers are already paying the price. 

Failed merger attempts, bankruptcy filings, and rising fuel costs finally caught up with the company. 

According to the airline, soaring jet fuel prices linked to tensions in the Middle East was the final blow. 

But Spirit’s problems started long before that. The airline built its business around ultra cheap tickets, then made money through baggage fees and add-ons. That model worked for years, especially for budget travellers heading to Florida and the Caribbean. 

But bigger airlines started offering cheaper economy fares too, while Spirit got hit with higher labour costs, fuel prices, and debt. They tried for years to right the ship. Think back to a few years ago when Spirit was going to merge with JetBlue, but then that was blocked. They were also hoping for a bailout from the US government, but that didn’t come through either, so bye-bye Spirit. 

Now the fallout is spreading across the industry. Analysts say the number of monopoly routes in the US jumped sharply after Spirit disappeared, meaning fewer airlines are competing on some routes.

And as the rules of supply and demand go; when demand is higher than supply, prices increase. So we’re already seeing ticket prices climbing, especially on leisure destinations Spirit once dominated, like the Caribbean.

Other airlines are rushing to grab Spirit’s old routes and airport slots. 

Frontier, JetBlue, Breeze, Allegiant, and even the major carriers are expanding to fill the gap. But at the same time, the collapse is adding even more pressure on other low-cost airlines already struggling with expensive fuel and tight competition. 

So how will this impact us here in the Caribbean? Spirit was a major low cost option for travellers flying between the US and Caribbean destinations like Jamaica, the Dominican Republic, and Puerto Rico. 

So with less cheap seats available, travellers will likely delay trips or travel less often altogether. And for economies that rely heavily on tourism, that matters.

And that’s the bottom line.