Spirit Airlines Shuts Down, Cancels All Flights & Ends Era of Low Cost Airfare to Disney World
America’s largest ultra-low cost carrier Spirit Airlines announced an end to more than three decades of cheap flights after the company and federal government failed to reach a bailout agreement. This covers the shutdown, its immediate impact on travelers, and what it means for future trips to Walt Disney World and flights to Orlando Airport due to Florida being one of the biggest markets served by Spirit.
Spirit Aviation Holdings, the airline’s parent company, said in a statement on its restructuring site: “It is with great disappointment that on May 2, 2026, Spirit Airlines started an orderly wind-down of our operations, effective immediately. To our Guests: all flights have been cancelled, and customer service is no longer available. We are proud of the impact of our ultra-low-cost model on the industry over the last 34 years and had hoped to serve our Guests for many years to come.”
The airline’s website, previously a portal for millions who booked domestic and international flights, was suddenly transformed into a going-out-of-business site with the headline, “Spirit Winding Down Operations.” It’s obviously no longer a booking portal, but instead offers an FAQ for guests and vendors, with scarce information that raises more questions than it actually answers.
That website states: “All Spirit flights have been cancelled, and Spirit Guests should not go to the airport.” Spirit is not able to help rebook flights on another airline, but will automatically process refunds for any flights purchased through Spirit with a credit or debit card to the original form of payment.
Guests who booked flights via a travel agent should contact the travel agent directly to request a refund. Compensation for Guests who booked flights using any other methods, including a voucher, credit or Free Spirit points, will be determined at a later date through the bankruptcy court process.
Spirit is unfortunately not able to reimburse Guests for incidental travel costs associated with cancelled trips. If you purchased travel insurance, check with your carrier to see if these expenses may be covered under your plan. If you are currently traveling, it is recommended that you rebook on another airline immediately.
The airline had been operating under Chapter 11 bankruptcy protection since last August, and was close to exiting the process until the Iran war caused jet fuel prices to spike. That plunged the cash-strained airline into a new financial crisis. Spirit turned to the federal government for a rare last-ditch bailout, but no agreement could be reached.
Spirit’s shutdown immediately ended the jobs of most of the carrier’s 17,000 direct and indirect employees who served the airline in the U.S., Caribbean and Latin America. Some of them worked for Spirit for more than 25 years.
On its final day, Spirit Airlines flew more than 50,000 passengers. Management is working to transport more than 1,300 crew safely home to their bases. Other airlines will now step up to fill the void left by the ultra-low cost carrier.
As of Saturday morning, the tracking service FlightAware showed 100% of the airline’s flights canceled. Over 100 of the cancellations occurred at Orlando International Airport (MCO) and Fort Lauderdale-Hollywood International Airport (FLL), the latter of which being where Spirit was the leader in passengers served.
The closure of Spirit Airlines is hugely consequential news for travelers to Walt Disney World, and will have ramifications even for those who fly other airlines.
Data from aviation analytics company Cirium shows that FLL and MCO had 5,168 and 3,484 Spirit flights, respectively, scheduled during this quarter. Spirit offered routes to 60 destinations from the former and 36 destinations from the latter.
Spirit Airlines was one of the largest operators at both FLL and MCO, with the airports scheduled to see 17.5% and 6.9% of the airline’s departures, respectively. Those airports accounted for nearly 25% of Spirit’s total departures.
Accordingly, the end of Spirit Airlines will have a huge impact on the number of total flights canceled and routes lost, impacting the revenue of Orlando and Fort Lauderdale Airports.
It wasn’t just Orlando and Fort Lauderdale; Spirit also had a substantial presence at airports around Florida, including but not limited to Miami International Airport (MIA), Tampa International Airport (TPA), Southwest Florida Airport (RSW), and West Palm Beach Airport (PBI).
There will also be a ripple effect created by the lost passenger capacity and connectivity. Those travelers who otherwise would have flown Spirit will presumably still want to visit Walt Disney World, Universal Orlando, or wherever.
Just as new hotels don’t induce demand—people don’t book trips because of a hotel—the same logic applies here with airlines. No one was booking a trip to Disney to experience Spirit’s service on the way there or back. The only difference is supply or capacity isn’t being added here, but rather, subtracted.
Tourists visiting Walt Disney World still want to book that trip, and will now be ‘competing’ with other travelers for flights, driving up costs on other carriers. No further explanation is probably necessary–this is economics 101 concepts of supply and demand.
How that actually plays out, in both the short and long term, remains to be seen. Anecdotally, whenever I searched for flights to Walt Disney World, Spirit was always far and away the cheapest option. Typically less than even Frontier or Breeze, and often half or one-third that of airfare on Delta or United.
It’s likely that, long-term, the end of Spirit will drive up costs on all airlines. There’s also the potential for higher airfare costs to put trips out of reach for some budget-conscious travelers. The shutdown of Spirit could realistically increase flight costs for a family of 4 by $500 or more, and that could be the straw that breaks the camel’s back on affording a Walt Disney World vacation.
Other carriers have already announced their plans to “help” Spirit customers. Frontier Airlines, which had in the past unsuccessfully attempted to acquire Spirit Airlines, announced “systemwide rescue fare discounts” for stranded Spirit passengers.
According to Frontier, the airline currently serves more than 100 routes previously flown by Spirit and will expand further this summer with nine additional routes, plus 15 additional daily flights across 18 former Spirit markets, giving customers more options to rebook their travel plans.
“Spirit Airlines played an important role in expanding access to affordable travel and bringing more low fares to more people,” said Bobby Schroeter, Frontier’s Chief Commercial Officer in a statement on Frontier’s website. “We recognize this is a difficult time for their customers and team members. Frontier is making discounted fares available to help people keep their travel plans and maintain access to low fares.”
To support impacted travelers, Frontier is offering up to 50% off base fares across its network for travel through November 19, 2026. Customers can book by May 10, 2026 at FlyFrontier.com using promo code SAVENOW. Travel on Tuesday, Wednesday, and Saturday qualifies for a 50% base fare discount with a 21-day advance purchase, while other days of week are eligible for a 10% discount with no advance purchase required.
Frontier is also offering its 2026 GoWild Summer Pass for just $199, providing access to unlimited flights across the airline’s network through the summer. To learn more about the GoWild Summer Pass, click here.
Other airlines including JetBlue Airways, American, Delta and United have indicated their intentions to assist the now-defunct airline’s passengers. It remains to be seen just how much of this amounts to assistance and how much of it is good PR and free marketing.
All of the above-referenced airlines have more expensive base fares than did ultra-low cost Spirit. For its part, Frontier frequently runs (frankly) gimmicky sales that offer illusory savings thanks to coupon codes being offset by raising base fares.
I haven’t yet priced out fares via the SAVENOW promo code, but wouldn’t be surprised if this ends up being more of the same. Regardless of what happens in the immediate future, this will almost assuredly allow Frontier to raise, not lower, its prices over time since Spirit was its direct competitor.
The decision to stop flying came after what Spirit called “extensive and comprehensive efforts to restructure the business and pursue transactions to strengthen Spirit’s financial position and create a sustainable path forward.”
“Unfortunately, despite the Company’s efforts, the recent material increase in oil prices and other pressures on the business have significantly impacted Spirit’s financial outlook,” another statement released by the company said. “With no additional funding available to the Company, Spirit had no choice but to begin this wind-down.”
“For more than 30 years, Spirit Airlines has played a pioneering role in making travel more accessible and bringing people together while driving affordability across the industry,” said Dave Davis, Spirit’s CEO.
“In March 2026, we reached an agreement with our bondholders on a restructuring plan that would have allowed us to emerge as a go-forward business. However, the sudden and sustained rise in fuel prices in recent weeks ultimately has left us with no alternative but to pursue an orderly wind-down of the Company. Sustaining the business required hundreds of millions of additional dollars of liquidity that Spirit simply does not have and could not procure. This is tremendously disappointing and not the outcome any of us wanted.”
Davis continued by thanking the federal government for its efforts to try to preserve jobs and service. “Many stakeholders have stepped up for Spirit through our restructuring. We are grateful to our labor union partners, aircraft lessors, other business partners…for working with us on tangible solutions to restructure our business.”
Davis was hired last year to take over the company after it emerged from its first trip into Chapter 11 bankruptcy. A veteran executive from low-cost carrier Sun Country Airlines, Davis took Spirit back to U.S. Bankruptcy Court last August as the company struggled to stabilize itself after a key creditor declared the company in default.
As recently as this past March, Spirit was poised to exit bankruptcy this summer, but the Iran war disrupted the plan by driving jet fuel costs to unsustainable levels. In an 11th-hour attempt to survive, Spirit Airlines turned to the U.S. Government for what would have been an unprecedented bailout of a major airline.
According to reports, a deal was on the table that would’ve given the airline a $500 million loan–but also would’ve potentially yielded a 90% ownership stake in Spirit for the government. The proposal was controversial with Spirit creditors, politicians, and some of the public. Rival airlines also objected, arguing it would give Spirit a competitive advantage as they feel their own fuel cost pressures.
There was also the matter of precedent, or lack thereof. Since Congress deregulated the industry in 1978, no airline has ever been taken over by the government. Troubled carriers have gone to bankruptcy courts (many times) to restructure finances, and have been sold to competitors or liquidated.
In terms of additional commentary, this whole saga with Spirit is incredibly disappointing. As we’ve made clear over the years, Spirit was not our preferred airline, but that doesn’t really matter.
Competition is good for consumers. Spirit offered an ultra low-cost option that put airfare within reach of lower income consumers. The airline also put downward pressure on prices by undercutting its competitors by significant margins was a net positive for us, even while flying Southwest or Delta. I’m not looking forward to yet another increase in airfare as a result of this, but that’s exactly what’s going to happen.
Spirit shutting down is also unsurprising. Back in late March, we published Why the Iran War Could Cut Crowds at Walt Disney World & Negatively Impact Your 2026 Travel Plans. That article focused extensively on airlines, with quotes from CEOs and executives pulled from the then-recent JPMorgan Industrials Conference.
From what was shared at that event, many had already raised fares in response to the Iran war, with Kirby saying that airfare was “running up between 15% and 20% in the last week…so pricing has been going up as one would expect.” At that time, oil prices had risen to over $100 a barrel, but jet fuel costs had climbed considerably higher.
As we pointed out, even though airfare had already jumped by 15-20%, that didn’t fully account for the rise in jet fuel. Meaning that airlines are going to continue to gradually raise prices to account for higher input costs–not do it all overnight.
Delta CEO Ed Bastian shared that Delta is well-positioned to emerge stronger, and it was in a “position of strength” to raise airfare prices. Multiple other airlines suggested that there would be short-term pain for long-term gain for their airlines.
The short-term pain was the squeeze on margins by virtue of higher fuel costs. All U.S. carriers face this particular problem because most do not hedge fuel costs, unlike some international airlines that use hedging to cushion price shocks. Instead, they have been relying on fare increases and capacity discipline to recover part of the added expense.
Airline CEOs pointed out during the conference that soaring fuel costs would put additional pressure on low‑cost carriers, compounding strains on business models already challenged by rising labor expenses.
Both Delta and United pointed to ultra-low-cost carriers, like Spirit and Frontier, as being particularly squeezed by the surge in fuel prices. These airlines have been struggling to survive, so prolonged conflict in Iran could pose an existential risk. (Again, they said this back in mid-March.)
That, in turn, is precisely what would help the other airlines emerge stronger. Delta’s CEO referred to this as “another period of dislocation and disruption” that makes the airline industry “tighter and smaller and more durable,” which will yield a better return in the longer term for Delta. “Not what we wish for, but I think that’s going to be,” added Bastian.
The sentiments shared by airline executives back in March strongly suggest to me how those companies and their investors actually feel about the end of Spirit, not the carefully crafted PR statements promising to “help” passengers with supposed rescue fares. At the risk of stating the obvious, what’s good for the airlines is often bad for consumers.
Travelers to Walt Disney World and other destinations throughout Florida will feel this to a disproportionate degree, due to the defunct Spirit Airlines’ outsized presence in the Sunshine State. The loss of this ultra-low cost carrier will mark the end of an era for cheaper flights to Orlando, bloating budgets for Walt Disney World tourists in the process.
Moreover, we’d also once again stress that the cascading effects of the conflict in the Middle East are going to be felt by consumers in direct and indirect ways, beyond just prices at the pump. Spirit Airlines is the first corporate casualty, but probably not the last.
Planning a Walt Disney World trip? Learn about hotels on our Walt Disney World Hotels Reviews page. For where to eat, read our Walt Disney World Restaurant Reviews. To save money on tickets or determine which type to buy, read our Tips for Saving Money on Walt Disney World Tickets post. Our What to Pack for Disney Trips post takes a unique look at clever items to take. For what to do and when to do it, our Walt Disney World Ride Guides will help. For comprehensive advice, the best place to start is our Walt Disney World Trip Planning Guide for everything you need to know!
Your Thoughts
Thoughts on the shutdown of Spirit Airlines? Will you be impacted by this on future trips to Walt Disney World or elsewhere? Do you agree or disagree with our assessment? Think gas and airfare prices will remain elevated into the summer and potentially 2027? Or, do you disagree entirely, and think this will be over quickly or won’t have any impact on travel? Any questions? Hearing your feedback about your experiences is both interesting to us and helpful to other readers, so please share your thoughts or questions below in the comments!
I am of two minds about Spirit. I didn’t find it to be be particularly discounted. They absolutely gouge you with high luggage prices and other “extras”. Often, when comparing airfares, I would end up choosing an alternative, because Spirit was not at all economical in the end and airlines such as Jet Blue and Delta were priced about the same in the end. But, in my limited experience I found Spirit to be quite reliable. In fact, more so than Jet Blue (horrible flying experiences). Is Frontier the next to fall? I understand they’re hanging in by a thread. I hope not, but it wouldn’t surprise me. Perhaps, they will have a better outcome when negotiating a government bailout.
If there is a real market for an airline like this to be profitable someone will buy the planes and make it happen.
I refused to fly Spirit even though it flew from a closer airport with free parking. whatever I saved on the ticket quickly would disappear in other fees. if going to WDW, you need to check bags.
Also, they often canceled flights which was even the bigger reason… just an unreliable option.
I do think this will dramatically hurt WDW. I did a quick price check on Southwest yesterday and with their new pricing system, to be able to check bags and reserve seats we are looking at at least $500 more. When fuel costs got down, it could get a little better, but it is enough that had this happened earlier in our lives we would have went every 5 ot 6 years instead of 3 or 4. That would have meant three fewer trips.
WDW is about to see the chickens come home to roost. They have unapologetically raised the prices to purposely have fewer people, yet close large areas and take 5plus years to complete attractions to save costs. There surely are wealthy people going, but the majority are credit card financers who may just decide this added expense is too much.
I am heading into retirement and as little as a few years ago I was actually looking at snowbirding to Orlando or at least getting a season pass and coming down several times a year.
The antics of the company are giving me pause. I will be able to absorb all these additional costs by the company, but the airfare issues will definitely limit even someone like me… let alone a family!
I flew on Spirit from Atlantic City to Fort Myers twice in April. The cost was half what the major airlines were charging. Both flights were great. The seats were terrible, but the flights were comparable to United. Except for drinks and snacks, of course. Another upside to flying Spirit was driving to (and parking at) Atlantic City instead of Newark.
I am currently at Universal. Booked that flight (on United) in February at a reasonable price. Guess those prices are history. Also guess I’ll be taking less trips.
Let’s understand, it’s not just oil that comes through the strait. 20% of global liquefied natural gas, industrial fertilizers (urea, ammonia), sulfur, petrochemicals, helium, and aluminum. It serves as a vital economic conduit for chemical feedstocks like methanol and monoethylene glycol (MEG), alongside metal components like iron.
Yet I tell you not to worry.
Our country got through disco, mullets and jelly shoes.
We can do this.
Lets talk again in 6 weeks.
My personal experience with so called ultra-low-cost carriers has been terrible. This includes DIS-Spirit Airlines among others. By the time you account for all the extra nickle and diming for bags, in-person check-in fees, seat upgrades, etc., the cost was virtually indistinguishable from larger airlines. Then you were still stuck with their uncomfortably thin non-reclining seats and poor on-time flight reliability. When I considered branded credit cards for other major carriers and the benefits of using those cards (airline miles, status building, early boarding, free bags…), Spirit did not actually save me any money at all! From what I have read, most if not all major carriers are now making more money from their branded credit cards than they are from flying. The airline simply gives them a product to market the use of their credit cards. If this is true, it is very easy to see why Spirit failed. It is virtually impossible to compete and and make a profit with only the flights themselves bringing in revenue. Thus Spirit’s failure is mostly an inability to adapt. I do not expect this to drive up airfares across the board, but I also do not see it resulting in any long-term discounts. Spirit is just yet another failed company in a long line of bad business models. And their terrible product did not mobilize any kind of ground force amongst their patrons to keep them afloat.
Thank you for posting this. The return leg of my upcoming disney trip was on Spirit Airlines. I was able to book a return flight on another airline this morning. Spirit and Travelocity haven’t even sent me an email stating my fight was cancelled yet.
RIP Spirit. Condolences to the employees.
A Few toughts
1. Spirit Airlines has been losing money for years before the closing of Hormuz. They had been selling plane tickets for LESS that it cost them to fly-the majority of their flights made them lose money. In that regards, they were like MoviePass that sold a $10 monthly pass to see a movie in the theaters every day. They went bankrupt too.
2. short term it means lover volume and high prices to Orlando. But long term, competitors will fill the gap, MCO will fill the gates, other companies will buy the planes, and former Spirit Arlines employees will get jobs at other airlines. Prices will go down again. But yeah – its going to take a while.
More market consolidation in an industry that already has extremely high barriers to entry (e.g., the capital requirements for an airline) is not going to result in lower prices for consumers. It’s just not.
I’m disappointed that there was no viable solution for Spirit.
I feel badly for the thousands of employees who just lost their livelihood.
I sympathize with any travelers who have been stranded.
I also sympathize with any cities that have lost significant service.
Unfortunately this will be a big blow to the traveling public. The loss of competition will give the green light for remaining airlines to raise fares, and only time will tell by how much.
My opinion is that this is a manifestation of the K shaped economy, except in this case it’s a business that has been affected.
Less wealthy businesses and individuals alike have been strained by higher daily costs.
What used to be an economy that was sustainable for many businesses and individuals is proving to be high stakes and unforgiving for those that don’t have a lot of buffer.
I don’t know if that prosperity will ever be restored, but I hope it will.
Very well said.
“I don’t know if that prosperity will ever be restored”
It breaks my heart to read this.
Dear Scoop, Katie and anyone else who feels this way.
It’s been two months. How badly has your life been changed?
I suspect you are much younger than I am, so know this…. Prosperity ALWAYS returns.
Even now you live better than the richest people on the planet did 100 years ago.
Life isn’t easy. It’s not supposed to be. Life is a test. The challenge is where the fun is.
The greatest weapon you have (besides your faith) to defeat all your trials is attitude.
Lose positivity, lose your religion, lose hope, life will crush you.
Be strong, use common sense and try looking into Marcus Aurelius’ Meditations. My friend Jerry swears by it. And he’s done ok.
I wish you the best. Hang in there.
Your “family of four traveling to Orlando” example doesn’t quite hit for me because most families going for several days at WDW or other parks in the area will want to sit together (fee), bring a carry-on (fee), or check bags (fee). They might not want to fly at 6am or 11pm when fares can be lowest.
I’ve never wanted to fly Spirit but I’ve priced out trips with them and often the bottom line cost isn’t that much different than major carriers (especially if you’re a cardholder or have status in their loyalty programs). I noticed the same thing with discount European carriers, which are like bus rides in the sky. Great for no-frills solo or couples’ hops to places without fast train service, but not for big family vacations.
That said, you’re 100% correct about supply and demand here. And as you noted, the upward trend in airfares isn’t going to be a short term problem. The question for me is whether a government bailout is more likely than someone purchasing those planes and hiring the pilots/staff. Perhaps most critical is GATE capacity. Lots of wrangling/competition for gates at many airports. The ones Spirit holds aren’t usually the “primo” spots but they’re possibly Spirit’s most valuable asset.
This will not be the last economic casualty of closure of the strait. Even if everything went back to the pre war status quo today, the impacts would be felt for quite some time. 18k people losing their jobs so suddenly is heartbreaking.
Frequent Spirit flyer here. In fact, our upcoming flights to MCO were on Spirit, for under $80 each, roundtrip. We would always get the 6am flight, sit in those terrible seats, drink nothing but tap water, eat Dunkin that we bought from the airport take-out and roll in to MCO like ballers.
I will miss Spirit and their cheap flights and terrible service, and just paid through the nose for an alternative for our trip.
I only flew on Spirit two or three times over the years but it is unfortunate that the option no longer exists.
Interestingly, in my home market, Spirit’s fares following both Chapter 11 restructurings entered the stratosphere. I assume they were trying to recover costs but the fares were not competitive with fares on other airlines.
Prior to that the pricing was in line with the market.
With the loss of Spirit I am concerned about what airfares will look like in the future.
Tom – I agree with your comment in response to Mickey1928. The closing of the Strait of Hormuz is going to have a very long impact on the global economy. Just about everything consumers spend on is going to increase in price, so many families will have to prioritize their spending, and an expensive Disney vacation is going to be much less affordable for a great many people.
I do not really see this affecting Disney as its generally for rich people now and thise folks never flew with Spirit in the first place. Still sad. A 2 week war has turned into a global disaster.
You forgot that only the rich go to Universal too.
I think this is not entirely true. I am from an upper middle class household, and we flew spirit frequently. It allowed us to comfortable fly to Disney World about three times a year for the last few years. On other airlines, we could have gotten about 1 round trip flight for the cost of three on spirit. I also experience better service and reliably than on my flights with JetBlue which were able 3X the price.
Not all people I know are willing to fly Spirit, but I did know quite a few who would – even those with more income than myself.
I’ll miss spirit. I think this will definitely limit the number of trips we will be willing to make to WDW going forward.
I read most of the article and skimmed the last part. I didn’t see Allegiant mentioned at all as a low-cost competitor to Spirit. They are the only budget airlines flying from my city and aren’t struggling as far as I know.
I think one of the most overlooked aspects of this was the US government (Trump) suggesting that they could provide a buyout in exchange for possible ownership of a private company. Spirit was and would always be in trouble, that was their business model, live on the margins. But the escalation of fuel cost created by the war put them on the tipping point. Then the government comes in to buy them for a discount.
As you suggested, this is just the first domino to fall domestically. And there are likely to be more companies teetering on the precipice as the impact of tariffs, trade wars and physical wars impacting oil continue.
I am concerned that this is just the beginning of Trump et Al’s business model taking hold and that many businesses will find themselves being bought out for pennies on the dollar.
No one cares until it impacts directly on them. But if this is a stack of dominoes,
There will be more to fall.
It would be an interesting case study (I mean, as interesting as talking about airlines gets, so mildly interesting) in how a lower cost option like Southwest has moved to the front of the pack in profitability, while Spirit is going under.
Longer term, a part of me thinks we will see a shift in overall energy consumption patterns. In the realm of travel, my impression is that trains are pretty underutilized in the US. We’ve looked into taking a train to Orlando as there’s a pretty direct route for us, but because railways are not subsidized like airlines, they tend to be equally expensive but take much longer. If they could get prices down, it would be a really attractive option.
Tom,
The pop up ads are getting very annoying , difficulty to x out of and interfering with your reading material.
I’ve followed you for years and have not been so annoyed as of late.
I’m sure I’m not the only one subscriber harassed by these ads!
I think I’m done with my subscription.
Regards,
Susan Burkett
I agree with Susan’s comment. I appreciate DTB’s coverage, but it seems that something has changed with the ads. They feel more intrusive than in the past. The most annoying part is the videos that start playing with sound even when I don’t click on them.
First, Tom your integrity clearly shows by you not filtering out these comments – this integrity is a big part of why so many of us appreciate you and follow you! Second, not to pile on but it’s gotten to where I don’t read your articles very often anymore. The White Castle add has sound even when the speaker image is crossed out and that’s so embarrassing when you’re in a waiting room, etc. also, the pages continually reload and it takes you back to the beginning of the article four or five times as you try to read through it (on mobile). This didn’t happen before. We appreciate you and know the ads are necessary but maybe not the video ads or make sure they don’t mess with the page functionality on mobile?
Actually, I appreciate the feedback on this!
Ads should be muted by default–but that doesn’t always happen for reasons beyond me, in which case I have to email the ad network. I also contact them when certain more intrusive ads display (bigger borders, etc.), or just ones I don’t like. But I also don’t see all of the ad types (or anywhere close to all of them), so this type of feedback is valuable.
We actually did decrease the quantity of ads (or density) earlier this year, but I think it’s the more intrusive ones that bother readers more. Anyway, thanks–I’ll send this along to the ad network and see if they can take care of the White Castle ad and reload issue.
Good thing that merger with JetBlue got ix-nayed.
Really hope this gives future administrations pause, and serves as a cautionary tale. Probably wishful thinking.
This will not last into 2027.
It will be over before the elections, probably much sooner. The Strait of Hormuz will be open even sooner and once it is, the oil companies will no longer have that excuse. The global price of a barrel of oil should plummet bringing the price of all fuel way down.
The only hiccup to this may be an age old one. Greed!
Regardless, summer will be great. This will be a really good time to visit Disney. Enjoy your life.
You control your happiness. Don’t let anyone or anything else get in the way of that. So I ask you, is the Strait half open or half closed?
To each their own, but I think you’re massively understating the long tail of this, even once resolved. Look back at COVID and the supply chain disruptions that lasted years even after the general public was ready to get on with their lives. This is not like flipping a switch.
To your point about greed, a couple of airline executives have already talked about how travel demand remains robust even after they’ve raised airfare. You know what that tells them? That the market will bear higher prices than what they were charging.
Obviously, people should enjoy their lives, summer, etc. But this is going to have a long impact on fuel, agriculture, shipping, etc.
I don’t think you know how oil futures work. Also where are you seeing signs the strait will be open? It was only supposed to take 2 weeks before, now there’s no clear end or sign there will be an agreement from either side.
Dear Tom, I love you but there is no long tail on this. Of course we may have a different definition as to what long is.
COVID lasted for years with governments shutting down countries, thus the supply chain disruptions.
There are no supply chain disruptions now. Only price increases.
They will come down but how fast is the question. That’s where we agree that greed will play a major factor.
Strange how hard it becomes for companies to bring prices back down when they realize how far we can be pushed.
That’s everywhere. Disney, stadiums, taxes. Half the time they just look for excuses to raise a price or create a new tax.
But gas will come back down, the price of a barrel of oil will drop and this will happen sooner than later.
I respect your belief this will have a long impact on fuel, agriculture, shipping and everything else under the sun. I tell you the world and it’s desires pass away. You have 6 times as many decades to go as I have left. However long you think this will last it’s a drop in the bucket.
To my friend McG3D, I appreciate your thoughts. Maybe you’re right. Maybe I have no clue as to how oil futures work but I believe the price of a barrel of oil will drop dramatically when the Strait is open. We recently saw how quickly the price fell for a day or two at the thought that they were opening and of course how quickly they shot back up when it became clear tankers weren’t coming through.
Your other questions are very good ones.
If you’re truly interested I will attempt to give the how and why I see a sign. This will be long but it’s the short version. What I’m telling you is partially based on what I learned from studying the Qur’an with Muslim friends. I’m a Christian first but I believe all religions have truth in them.
To understand what is going on we must understand our opponent.
First, the bad news.
Currently, there is no other side to make an agreement with. There are several different groups trying to emerge as the leaders of Iran. Unfortunately the ones with the guns are the problem.
The Supreme Leader and the IRGC believe in a particular strain of Islam known as Twelver Shia theology or “Twelvers”.
The following is a description I hobbled together from other works.
The belief held by the Ayatollahs—specifically the leadership of the Islamic Republic of Iran—regarding the 12th Imam (Muhammad al-Mahdi) is a central tenet of Twelver Shia theology that has been politicized into an active, APOCALYPTIC doctrine often termed “political Mahdism”. They believe the Mahdi is a living, occulted (hidden) messiah who will reappear to destroy evil and establish justice.
The Ayatollahs believe the Mahdi will emerge during a time of immense global turmoil, leading a final battle against the forces of injustice—typically identified as the West (the “Great Satan”) and its allies.
Here’s where the whole problem began.
While historically Twelvers waited patiently for the Imam’s return, Ayatollah Khomeini transformed this into an active obligation. The regime believes it has a religious duty to create the social, political, and military conditions to hasten his return. The IRGC is viewed as the “vanguard” of the Mahdi’s army, and its military activities (hostility toward the U.S., regional proxy conflicts) are seen as necessary steps to prepare the ground for his reappearance.
The Ayatollahs believe the Mahdi will emerge during a time of immense global turmoil, the Apocalypse, leading a final battle against the forces of injustice—typically identified as the West (the “Great Satan”) and its allies.
What is happening now is exactly what the IRGC and the Supreme Leader want. This is what they live and more precisely willingly die for. A rational government that cares about it’s people would have surrendered by now. That will not happen.
Fortunately they can’t beat us. They can inflict some damage but essentially our forces are too much for them. The blockade of their ports is devastating the economy but more is needed.
We are going to have to strike them again and open the strait ourselves. This is doable and I believe will occur soon. Common sense tells you this must be done.
Have faith.
You are overly confident about the re-opening of the Strati of Hormuz. I wish you were right, but I fear you are not.
So in agreement with the sentiment, “Enjoy your life..”, but we can’t underestimate the impact of the war, inflation, corporate greed has and will continue to have on consumers. Unforced errors.
Although it will affect the entire flying public, either directly or indirectly, I’m glad to see Spirit go. Their idea of customer service was so abysmal that it was a stain on the entire industry. Good riddance!
We strongly recommended travelers not use Spirit for a variety of reasons, one of which was customer service.
But at the same time, it’s tough to criticize the ultra-low cost carriers (IMO) for meeting the market. People say they want better service, no nickel & diming, more legroom, etc., but when push comes to shove, many consumers are willing to sacrifice a lot for lower prices. Money talks, as the saying goes.
Personally, I think it’s a good thing that there are a variety of product offerings at a variety of price points serving a wide array of Americans. Just as I’m glad regional amusement parks exist; they fill a vital role and are good for consumers.
I fly a lot of different airlines. In the last year, I have flown American, Delta, JetBlue, Southwest, and Spirit. I’ve also flown others not much more than a year ago.
I find most airlines have lackluster customer service. Delta i have by far have had the best experience with. American next, but I have also dealt with some big and time consuming issues. Spirit I would honestly put above JetBlue who has been absolutely horrendous to deal with and honestly not that much below American. For the price, I absolutely feel like spirit has the best value for the dollar. Is it the best? No, but it is also not 3x worse.