© picture alliance / Markus Mainka | Markus Mainka
The American low-cost airline Spirit Airlines is bankrupt. Among the reasons for the bankruptcy are higher fuel prices.
The American airline Spirit Airlines, accounting for 3.5 percent of the U.S. domestic market, is bankrupt. Spirit Airlines was a pioneer in offering low-cost air travel and had been struggling to stay afloat for several years, losing billions of dollars in recent years.
With the recent rise in fuel prices, the airline was finding it increasingly difficult. The Trump administration proposed another $500 million credit, but the airline's investors and government officials could not agree on how to save the company.
"Unfortunately, despite Spirit's efforts, the recent sharp increase in oil prices and other pressures on the company have significantly affected Spirit's financial outlook," the airline announced. "With no additional financing available to the company, Spirit had no choice but to wind down operations."
Spirit originated as a transportation company in the 1960s and began offering charter flights in the 1990s. Throughout its 34-year existence, it developed into a disruptive force in the U.S. airline industry with a low-fare policy comparable to Irish low-cost carrier Ryanair. Major U.S. airlines such as Delta Airlines, United Airlines or American Airlines, were also forced to offer air travel at low prices.
All Spirit Airlines flights were immediately canceled Saturday. Spirit is the first major U.S. airline in 25 years to go bankrupt due to financial problems. With Spirit Airlines' bankruptcy, 17,000 people will lose their jobs.
Picture: © picture alliance / Markus Mainka | Markus Mainka