The bright yellow livery of Spirit Airlines is set for a sombre farewell as the seventh-largest US airline faces an uncertain future. Since 2019, it has failed to turn a profit and filed for bankruptcy twice in just two years. Despite optimistic projections from its leaders, the ultra-low-cost carrier (ULCC) now teeters on the brink.

The sudden rise in fuel prices due to the conflict in Iran threatens to tip Spirit into insolvency. Its executives have turned to the government for a bailout, but even this may not be enough; the US administration seems sceptical of such a solution and is reportedly considering a loan with significant stakes in exchange.

Historically, Spirit’s business model targeted budget-conscious flyers who craved the lowest fares. Yet, as other airlines like Delta have raised prices to offset soaring fuel costs, Spirit has struggled. Its ambitious expansion into new destinations, coupled with engine malfunctions and a pandemic-driven downturn, have left it in a death spiral of debt.

The saga of Spirit Airlines reflects broader issues within the airline industry: bad economics, poor strategy and plain bad luck. Could a merger with JetBlue or Frontier be the saviour? Or will 14,000 jobs disappear as the carrier fades into history?