ALLEGIANT AIR

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.

Editorial cartoon showing an IRS official in a dark suit holding a briefcase labeled "IRS" watching a commercial airplane taking off, depicting the tension between tax authorities and budget airlines seeking a tax holiday during the jet fuel crisis

Budget airlines want a tax holiday—but where’s yours?

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The Association of Value Airlines, representing Spirit, Frontier, and Allegiant, is asking Congress to suspend the 7.5 percent federal excise tax on domestic tickets and the $5.30 per-segment fee, citing the jet fuel crisis following the Iran war. On a typical $369 roundtrip fare, passengers already pay roughly $47 in mandatory taxes and fees, inflating ticket prices by about 13 percent. Without a requirement to pass savings to consumers, any tax holiday would function as a corporate subsidy rather than traveler relief.