Spirit Airlines attorney apologizes to Americans who ‘lost the price’ of air travel
The panel analyzes the turmoil in the airline industry driven by rising fuel costs, rising airfares and the collapse of Spirit Airlines in ‘Barron’s Roundtable.’
The sudden collapse of Spirit Airlines has left budget-conscious families stranded just weeks before the traditional launch of the summer travel season on Memorial Day.
Shortly after Spirit was shut down, the company’s attorney apologized in bankruptcy court to Americans who have now been reimbursed for their air travel expenses.
“We’re very sorry to those Americans who may now be missing out,” Spirit attorney Marshall Huebner said in bankruptcy court, the Associated Press and Fortune reported, before thanking longtime passengers who “couldn’t have afforded to fly.”
Huebner said earlier this month that skyrocketing jet fuel prices had left the company with “no option” for bankruptcy and caused it to halt operations last weekend, while it seeks approval to continue selling assets and pay bonuses to remaining workers.
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Spirit Airlines announced on May 2 that it would suspend operations, effective immediately, after President Donald Trump’s bailout failed to materialize. The carrier was seeking a $500 million bailout from the federal government, but the deal was not finalized in time due to financial problems, the Wall Street Journal reported.
Passengers roll past the Spirit Airlines ticket counter at an empty Terminal E at DFW Airport, May 5, 2026, after the airline shut down operations. (Getty Images)
Although Spirit’s death and bankruptcy problems have been years away, the airline has faced increased pressure from rising jet fuel prices after a dispute involving Iran disrupted oil shipments to the Middle East nearly 11 weeks ago. Budget airlines are more vulnerable to rising costs because they can’t easily lower fuel prices with premium cabins, corporate travel programs or loyalty rewards, driving ticket prices out of the reach of middle-class travelers.
When the volatility of the oil market began, the Association of Value Airlines – which represents Spirit, Allegiant Air, Avelo Air, Frontier Airlines and Sun Country Airlines – reportedly asked the Trump administration for temporary assistance of $ 2.5 billion.
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A trade group representing American Airlines, Delta, JetBlue, Southwest and Alaska Airlines quickly rejected the idea, arguing it would create unfair profits.
“Government intervention on behalf of those airlines will penalize other airlines that have taken it upon themselves to face rising costs and reward airlines that have not made those tough decisions,” Airlines for America wrote in a press release. “Also, in the long run, businesses that continue to be unable to recoup their costs of capital harm competition and consumers by making it more difficult for other airlines to compete.”
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Transportation Secretary Duffy blames the Biden DOJ for the collapse of Spirit Airlines
“Not all airlines are struggling equally,” Barron’s co-editor Jack Hough told Barron’s Roundtable last week. “Delta and United are very strong. They could each generate about $2 billion in free cash this year, but JetBlue and Frontier, they’re burning cash right now like they’ve been doing for years. And of course, Spirit Airlines has folded, so it’s taking away a lot of price competition from the major carriers.”
“I think it suggests that cheap flights are going to be hard to come by for a while,” Hough warned.
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FOX Business’ Matthew Kazin, Eric Revell and Sophia Compton contributed to this report.
