Challenges facing US low-cost airlines amid market pressures

Despite being budget-friendly compared to mainstream competitors, these airlines have faced criticism from customers. In May 2025, a Spirit passenger reported seeing pests on a flight, leading to a response from the airline: “We maintain high standards of cleanliness across our fleet and want all of our guests to feel comfortable when traveling with us.”

In December 2023, Frontier Airlines mistakenly sent a teenager to Puerto Rico instead of Cleveland due to a gate mix-up. The airline commented: "On December 22nd, 2023, a 16-year-old male passenger who was scheduled to fly from Tampa to Cleveland mistakenly boarded a different flight to San Juan."

Ultra-low-cost carriers in the US struggle despite successes in Europe by companies like EasyJet and Ryanair. Scott Kirby, CEO of United Airlines, criticized the business model as aiming to "screw the customer." In November 2024, Spirit filed for bankruptcy after significant losses but remains focused on refinancing debt and improving liquidity.

Frontier recently achieved profitability by focusing on peak times and introducing new loyalty programs. Allegiant Air ventured into hospitality with Sunseeker Resort in Florida but plans to sell it due to lackluster interest.

The future for US ultra-low-cost carriers remains uncertain as they face competition from legacy carriers offering strong economy fare products and rising operating costs.