AIRLINE DEREGULATION

Cartoon of smiling sardines packed upright into narrow airplane seats in a tightly spaced cabin, illustrating how shrinking economy legroom crams travelers in like sardines.

Premium creep: How the travel industry downgraded you for profit 

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Remember when you could check a bag, choose your seat, and stretch your legs on a flight without paying extra? It is not an urban legend. You used to be able to do all three at no additional charge. A 34-inch seat pitch was once standard in economy class. Today the industry calls that same space premium economy and charges you more for it, while the 30-inch squeeze becomes the new normal. Call it premium creep, the quiet industry-wide pattern where yesterday’s basics quietly become today’s luxuries, wrapped in marketing language about choice and flexibility. And it is not just airlines: hotels, cruise lines, and even car rental companies have all found ways to strip out what used to be included and sell it back to you. Which raises the question worth sitting with the next time you compare two fares: are you buying an upgrade, or just paying to undo a downgrade the company handed you in the first place?

Editorial illustration showing a single white airplane taking off down a runway between two large fields of grounded yellow Spirit Airlines aircraft on either side, viewed from behind, illustrating how thousands of Spirit Airlines passengers were left stranded after the carrier's shutdown while one rescue flight departs without them

Spirit Airlines’ death shows why we need better passenger protections

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Tens of thousands of Spirit Airlines passengers discovered their tickets were worthless this week after the carrier collapsed. JetBlue is reportedly in financial distress and several ultralow-cost carriers including Frontier, Allegiant, and Avelo have lined up at the federal aid window. Before deregulation in 1978, Rule 240 required airlines to put stranded passengers on a competitor’s next available flight at no extra cost. Congress brought a version back as Section 145 of the Aviation and Transportation Security Act after 9/11, but it expired in 2005. The DOT issued Order 2026-5-1 encouraging rescue fares but cannot compel airlines to honor competitor tickets without congressional action.

So long, Spirit Airlines. Should the government have saved you?

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Spirit Airlines has begun an orderly wind-down of operations, effective immediately. Every flight has been canceled and customer service is closed. The shutdown comes after the Trump administration’s $500 million rescue plan, which would have given the federal government an unprecedented 90 percent stake in the carrier, fell apart over the weekend. After blocking Spirit’s merger with JetBlue on antitrust grounds in 2024, the federal government spent the past several days weighing whether to essentially own the airline instead. In the end, it did neither, leaving summer ticket holders to fight their credit card companies for refunds.