In the early months of 2020, as the COVID-19 pandemic spread globally, the aviation industry faced an unprecedented shutdown. Passenger numbers plummeted, airline stocks dropped, and carriers struggled to survive with almost no travelers. Over four years later, while the industry has recovered, it remains fundamentally altered by the pandemic's impact.
COVID-19 reshaped route networks and business models, forcing some airlines out of the market while others expanded. The pandemic permanently changed passenger expectations and how they choose airlines.
"Budget airlines today are experiencing financial difficulties," highlighting a shift from their previous profitability. Before the pandemic, low-cost carriers like Spirit Airlines boasted high profit margins but now face increased operational costs and competition from legacy airlines targeting budget-conscious travelers. Issues with aircraft like the A320neo and 737 MAX have further hindered fleet growth for these carriers.
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