The budget airline model in the U.S. is running out of runway

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The budget airline model in the U.S. is running out of runway

Passengers board an Avelo flight at Tweed-New Haven Airport. Connecticut Public Broadcasting | Getty Images News | Getty Images With Spirit Airlines gone from the skies, travelers now have fewer …

Passengers board an Avelo flight at Tweed-New Haven Airport. Connecticut Public Broadcasting | Getty Images News | Getty Images With Spirit Airlines gone from the skies, travelers now have fewer lower-cost options waiting in the wings during the busy summer season. Americans may need to get used to it, as the changes taking place in how we fly could become permanent. For many years, airline efforts to create loyalty programs that keep customers sticking around could not compete with the one deciding factor for customers when purchasing a ticket: price. But the era of the low-cost carrier and ultra-low-cost carrier may now be irretrievably broken. "For decades, Americans have been voting with their wallets, showing that what they care about above all else is a cheaper fare," said Kyle Potter, editor of Thrifty Traveler, a travel website and flight deal aggregator. Potter said the insatiable thirst for low fares is what created low-cost carriers like Spirit, Frontier, and others. "I think Spirit's demise last month signals the start of a new era — maybe, a return to the so-called 'Golden Age' of travel ... and one that many everyday flyers may not like," Potter said. Recent results from leading carriers back-up Potter's view. Delta Air Lines' 2025 annual revenue hit an all-time high of $58.3 billion, yet the airline actually sold $1.1 billion less in economy tickets than the year prior. …

Original source: CNBC Top News

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Connecticut · New Hampshire · Spirit Airlines · Hormuz