Spirit Airlines set to drop thousands of flight staff, cut down schedules around the holiday season, reports say. What this could mean for your plans

So, what will that mean for your travel plans, and what does it say about budget airlines?

Budget airlines are struggling

Spirit Airlines isn’t the only budget airline in trouble. Southwest, Frontier and JetBlue all reported net losses in the first quarter of 2025, according to Reuters. (4)

Budget airlines have struggled to return to profitability since the pandemic, the report says. But now they’re dealing with a slump in demand among budget-conscious travelers amid economic uncertainty.

However, even with soft demand, full-service legacy carriers Delta and United Airlines managed to hold onto their margins. This can be partially attributed to demand from high-end leisure travelers.

Indeed, Bank of America Institute’s Consumer Checkpoint: Gains and Gaps report, released Aug. 12, found that “a widening gap has opened up between the wages and spending growth of lower-income households and other cohorts.” (5)

“As the odds of slower economic growth and higher inflation rise, the margin gap between budget and full-service airlines is expected to widen further,” per Reuters.

What does this mean for holiday travel?

Americans who rely on budget carriers that serve smaller regional airports or rural destinations may want to book tickets early for Thanksgiving and Christmas, as spots could fill up quickly. And they may need to shop around if they can no longer get a direct flight to their destination.

Reports say service to the following cities was scheduled to drop the week of Oct. 2: (6)