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Spirit bankruptcy could hit regional airports

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Albuquerque loses only ultra-low-cost option

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US airlines shift focus to premium travelers, profitable

routes

By Doyinsola Oladipo

NEW YORK, Sept 23 (Reuters) -

If Spirit Airlines slashes or eliminates service at Arnold

Palmer Regional Airport due to the carrier's second bankruptcy

in a year, residents of Latrobe, Pennsylvania, may soon have to

drive 65 miles to Pittsburgh if they need to fly anywhere.

"We have 150,000 people that want to go somewhere," said

Gabe Monzo, executive director of the Westmoreland County

Airport Authority in southwest Pennsylvania. Spirit is the only

commercial airline currently servicing the airport.

Spirit announced it would reduce its November flight

capacity by 25% and is furloughing one-third of its flight

attendants to save money after filing for bankruptcy last month.

If it slashes service to Latrobe, "It would be a real deficit to

air transportation here," Monzo said.

Since the pandemic, discount airlines have struggled, and

many have been trying to go up-market. Spirit's latest

bankruptcy filing was in August.

As part of its cost cutting efforts, it plans to end service to

11 locales. Regional airport operators, some of whom count on

Spirit as their only discount carrier, say it will leave fewer

affordable options for Americans flying on a budget.

Spirit has a unique relationship with the Arnold Palmer airport,

named after the famous golf champion, a native son who died in

2016. Westmoreland County spends about $900 million annually to

support Spirit's operations at the facility, which otherwise

serves small private planes.

"When Spirit decided to move in, the airport was very

limited in capabilities and it was not compatible with

commercial air service. But we changed all that," said Monzo.

"I fly Spirit all the time," said Darlene Wommer, who was

waiting to board a flight to Myrtle Beach, South Carolina, to

visit her father. "I'm going to miss it a lot if it goes."

Spirit said its presence has helped lower consumers' fares

for 30 years, whether they fly directly with the airline or

not.

The company arranged to merge with JetBlue ( JBLU ) in 2024, but the deal

was blocked by the U.S. Department of Justice, citing harm to

customers. That decision has forced Spirit to shrink its

operations, even as airport operators across the U.S. have

sought out Spirit to boost regional flight connectivity.

One of the casualties was a plan for twice-a-week flights from

Middle Georgia Regional Airport in Macon-Bibb County to Fort

Lauderdale for as low as $50 each way. Spirit had announced that

plan through a partnership this year with Contour Airlines of

Smyrna, Tennessee, but later scrapped it before it could kick

off in October.

"Our community was excited about it, so it's disappointing

that they're not going to be able to do that," said Doug Faour,

Macon-Bibb County's aviation director.

"We are evaluating our options as we implement our

transformation to best position Spirit for the future," Spirit

said. Contour did not respond to a request for comment.

Spirit also plans to stop service to Albuquerque International

Sunport, leaving New Mexico's largest commercial airport without

any ultra-low-cost carriers. Discount airlines Frontier Airlines

and Allegiant Air already departed from Albuquerque.

"It was a big deal getting them here initially," said Daniel

Jiron, associate director at Albuquerque International Sunport.

"We wanted them to be successful."

Without lower-cost carriers, travelers flying from

Albuquerque to Las Vegas may see prices rise, Jiron said. About

half the passengers transiting the airport use Southwest

Airlines ( LUV ), according to TD Cowen.

The Arnold Palmer airport is weighing other low-cost

options, as it has not heard yet if it will be on the chopping

block. Monzo said people are counting on the airline to pull

through.

"Our loyalty to Spirit is strong. We are going to work with

them to help them thrive in any way we can."

(Doyinsola Oladipo in New York; additional reporting by Quinn

Glabicki in Latrobe, Penn.; editing by David Gaffen and David

Gregorio)