Business
Spirit Airlines’ Demise Could Help Other Airlines
Spirit Airlines was once a potent force in the U.S. aviation industry. Its demise will reveal how strong that influence had been in recent years when air travel had already begun moving away from the low-fare model that Spirit pioneered.
The airline’s shutdown on Saturday after years of financial troubles resulted in the loss of 17,000 part-time and full-time jobs, and disrupted the plans of tens of thousands of travelers. But aviation experts say it is not entirely clear whether Spirit’s absence will have a significant, long-term impact on the industry, travelers or the U.S. economy.
Airlines will probably have an easier time raising fares and many will absorb Spirit’s gates, check-in counters and other assets at airports in the New York area, Las Vegas, Ft. Lauderdale and elsewhere. But the effect may not be huge, aviation experts said, because Spirit had shrunk a lot recently and was in its second bankruptcy in two years.
“By the time the plug was pulled, Spirit was no longer a major player,” said Michael Boyd, an aviation consultant with the Boyd Group International. “Half the fleet was parked and sold off.”
In May 2024, the airline operated 3.4 percent of all domestic flights, according to Cirium, an aviation data firm. It filed for bankruptcy later that year and again in 2025. Before it shut down, Spirit’s schedule for May would have amounted to just 1.1 percent of domestic flights.
The airline’s diminished business was a major reason many analysts and economists were befuddled by the Trump administration’s efforts to save Spirit, which ultimately went nowhere because the government and the airline’s creditors could not reach a deal.
Most airlines are temporarily offering discounted fares to Spirit’s customers. But many experts believe the company’s absence will result in somewhat higher fares over time, though how much prices will rise is hard to predict.
Spirit’s presence at an airport helped keep fares down, a phenomenon that was studied by economists and earned the name the “Spirit effect.” Even in its reduced state, the company played an important role in forcing other airlines to keep fares low, some experts said.
“It’s at the low-fare end of the spectrum where the market price is established,” said Robert Mann, an aviation industry consultant and a former airline executive. “And it’ll make it easier for everyone else to raise prices at that level.”
But some aviation experts said the consequence may be overstated. Other airlines have spare seats and can absorb many of the customers Spirit catered to. And many people who flew on Spirit tended to travel only when they found very low fares, so they may simply choose not to fly as often now.
Fares would most likely have risen with or without Spirit, some analysts said. Airlines started raising prices in March to make up for the higher fuel costs caused by the Iran war and many have warned further increases are coming.
“It is the industry that is the big winner as unprofitable domestic capacity is further reduced,” William Swelbar, an aviation consultant and economist, wrote in an email. “Fares have to increase or we will lose more airlines to bankruptcy/consolidation.”
Spirit’s slow decline in recent years had broadly helped other airlines, most notably larger carriers like American Airlines, Delta Air Lines, Southwest Airlines and United Airlines. The cities where Spirit flew most included Atlanta, Los Angeles, Detroit, Dallas, Houston, Newark and Miami.Those urban areas are home to important airports for those large airlines.
Those carriers had already found an effective way to compete against Spirit: “basic economy fares.” In the 2010s, American, Delta and United introduced these fares, which were cheaper than standard economy tickets but did not include things like the ability to pick a seat or bring multiple bags on the plane. In recent years, use of these fares has grown a lot, reducing demand for tickets from low-fare carriers like Spirit.
Some smaller airlines also stand to gain by Spirit’s absence, notably JetBlue Airways. JetBlue had already been expanding at Spirit’s home base, Fort Lauderdale-Hollywood International Airport, just north of Miami.
JetBlue said last month that it had added nonstop flights to 21 cities from Fort Lauderdale over the past year, which it views as its third big hub airport after Kennedy International in New York and Boston Logan International. On Saturday, after Spirit shut down, JetBlue said it would add flights from Ft. Lauderdale to 11 more destinations.
“It is full steam ahead in Fort Lauderdale,” Joanna Geraghty, JetBlue’s chief executive, said on a call with investors and analysts last month.
Spirit’s collapse may have a disproportionate effect on some smaller, regional airports. For example, it was the only airline flying to Arnold Palmer Regional Airport in Latrobe, Pa., which is a little more than an hour’s drive from Pittsburgh International Airport.
Spirit also accounted for nearly all flights to Atlantic City International Airport in New Jersey. But other growing budget carriers, such as Allegiant Air and Breeze Airways, which both recently started flying to Atlantic City, may well replace some of the flights smaller airports lost with Spirit’s shutdown.
Frontier Airlines, perhaps Spirit’s biggest competitor in the low-fare segment of the industry, stands to benefit, too. But it is facing many of the same challenges as Spirit did.
“The data suggests that Frontier will win because of its route overlap with Spirit,” Mr. Swelbar said. “But that overlap is also filled with basic economy seats.”
Spirit may help other airlines in another way. Its demise has suddenly made thousands of experienced airline workers available, including more than 2,000 pilots and hundreds of mechanics. United Airlines this weekend began an effort to recruit Spirit employees, saying it would pay special attention to their applications. Demand for pilots, mechanics and other professionals has been high for years.
But Spirit’s assets — planes, airport gates and other real estate, including at LaGuardia Airport in New York — won’t become available immediately. Many of those assets were used as collateral for Spirit’s loans, meaning they will be distributed through bankruptcy court proceedings, which could take some time.
“It’s not going to happen by Monday,” Mr. Mann said, “or next month, or probably for several months.”
Business
What we know about GKN Aerospace, the firm at center of O.C. chemical leak
The chemical leak that triggered evacuations across a swath of Orange County on Friday is located at GKN Aerospace, a manufacturing company based in the United Kingdom.
A leading aerospace firm
The company manufactures landing gears, jet engines and other materials for commercial and military aircraft.
GKN Aerospace’s Garden Grove facility, which sits on 15.5 acres on Western Avenue, designs, analyzes, tests and certifies military canopies, cockpit windows and passenger windows, according to its website.
The company has been at the site since 2004, according to city documents.
“GKN Aerospace manufactures the world-leading F-35 canopy from its Garden Grove facility, as well as transparencies for the Boeing 787 Dreamliner and 737, the Airbus A350, HondaJet and Bombardier C-Series,” the company’s website states.
What company is saying
A spokesperson for GKN Aerospace told The Times on Friday that they are responding to the situation and working with fire crews and specialized hazardous materials teams.
“There are no reports of injuries at this time, and our priority remains the safety of our employees, responders, and the surrounding community,” the spokesperson said. “The situation at our Garden Grove site remains ongoing, and we are fully focused on working with emergency services and the relevant authorities to ensure the safety of our employees and the local community.”
The problem
There are three large tanks with a highly toxic chemical called methyl methacrylate, or MMA, used to make plastic, at the site in the 12000 block of Western Avenue in Garden Grove.
One tank that officials have said is “in crisis” has about 7,000 gallons of the chemical left in it. It started experiencing a rise in temperatures on Thursday, which triggered temporary evacuations. But fire crews were called out to the site again on Friday.
Craig Covey, a division chief with the Orange County Fire Authority and the incident commander, described two possible scenarios for the tank during a news conference on Friday afternoon.
“One, it fails and cracks, and all the product leaks out onto the ground,” Covey said, and efforts are underway to try to prevent the liquid from “getting into the storm drains and the river channels and into our oceans.”
Or, it will explode, he said.
Officials have been working to come up with what Covey said were “out of the box” ideas to prevent as much damage as possible.
“Our group is going to do everything they can to come up with a third, a fourth, a fifth option,” he said.
OSHA inspections
The company’s Garden Grove facility has undergone four inspections by the Occupational Safety and Health Administration since 2018, which resulted in 10 violations, public records show.
More information about those violations was not immediately available.
In 2019, the California Department of Industrial Relations filed a request in Orange County Superior Court that a judge order the company to pay $2,898 in unpaid civil penalties.
The citation, outlined in court records, alleged the company in April 2018 “failed to ensure that all machinery and equipment in service were inspected or maintained as recommended by the manufacturer.”
The company also received a violation for allegedly failing to “implement and effective written injury and illness prevention program” in accordance with state law.
It doesn’t appear that any of the violations were related to the tanks at the center of Friday’s incident.
The documents do not say how the company responded to the inspection reports.
“Safety at our facilities is paramount,” a GKN spokesperson said in response to questions from The Times. “We follow all standard safety protocols and processes and are regularly audited by numerous state and federal agencies.”
“Our focus and priority today is on working with emergency services and the relevant authorities to address the issue at hand and protect the local community,” the spokesperson added.
This year the company sought permission from the Garden Grove planning commission to construct a new employee break room on the site. The plans included the construction of a new 1,504 square-foot building, a roof deck and an open-air patio, according to city documents.
Questions from officials
Congressman Derek Tran, an Orange County Democrat, said Friday night that he had spoken with the leadership of GKN Aerospace and had “urged the company to take full responsibility for the panic and disruption that tens of thousands of residents are currently experiencing.”
“We agreed the priority is the safety of the community and addressing the urgent crisis at hand,” Tran wrote in a post on social media.
“I’m continuing to work with emergency personnel to ensure that residents are safe and have the resources they need while officials work to mitigate the impacts of the hazmat incident.”
Business
Los Angeles hotels are still waiting for a surge in demand from the World Cup
Hotel rooms in Los Angeles and other FIFA World Cup host cities could sit empty, despite high expectations that the global sporting event would be a boon to the city.
The soccer tournament, which has sold more than 5 million tickets so far, has historically triggered a surge of international and domestic tourism and infused host cities with an economic boost.
This year, however, 80% of hotels surveyed by the American Hotel and Lodging Assn. said bookings are lagging behind initial forecasts. The hotel association partly blames FIFA for the slowdown, saying the organization overbooked blocks of hotel rooms that did not reflect true demand.
Travel also is being hampered by higher airfares and gas prices due to the conflict in Iran. Visa barriers and broader geopolitical concerns are suppressing international travel demand, the report said.
“With just two months until kickoff, indicators suggest the anticipated economic lift may fall short of expectations,” the report said. The number of tickets sold for the tournament “has not yet translated into strong hotel bookings.”
In L.A., where World Cup games will be played next month at SoFi stadium, more than 65% of hotel respondents said room bookings were below estimated demand.
Many respondents said bookings were even lagging behind that of a typical summer.
Visitors enter a hallway at the Hotel Figueroa downtown on Friday.
(Genaro Molina/Los Angeles Times)
Hotels in Los Angeles cited visa complications and long distances from the venue as obstacles to bookings. According to the report, FIFA booked thousands of rooms in downtown Los Angeles that it canceled.
Ahead of all World Cup tournaments, FIFA places large blocks of rooms on hold across various properties for FIFA staff, mediaand other stakeholders. As the tournament draws closer, FIFA will adjust its plans based on demand.
“All room releases were conducted in line with contractually agreed timelines with hotel partners, a standard practice for an event of this scale,” a FIFA spokesperson said in a statement. “Throughout the planning process, FIFA’s Accommodations team maintained consistent discussions with hotel stakeholders.”
The spokesperson added that global demand for the 2026 World Cup is unprecedented.
“FIFA room block over-commitment created an artificial early demand signal that has since unraveled,” the hotel association report said. “Many hotels indicate that early booking signals overstated true demand.”
About half of hotel respondents reported cancellations or releases of previously booked blocks of rooms, the report said.
The staggering price of World Cup tickets this year could also be keeping away fans, said journalist and author Simon Kuper, who writes about soccer economics. Face values for tickets have climbed as high as $7,875.
“All the ticket prices in this World Cup are inconceivable for previous World Cups,” Kuper said. “It’s very much a new phenomenon.”
FIFA is projecting revenue between $11 billion and $13 billion for the four-year World Cup cycle, which ends when the tournament does.
Nonetheless, L.A. is expecting a major jump in tourism for the World Cup in June and the 2028 Olympic Games.
That would be welcome for an industry that is coming off some tough times.
Last year, tourist spending in L.A. fell for the first time since the pandemic began as wildfires, raids by Immigration and Customs Enforcement agents and trade tensions discouraged people from visiting, including tourists from Canada who traditionally flock to Palm Springs and other cities in Southern California during the winter months.
A visitor walks under a display of hats in the lobby of the Hotel Indigo on Friday.
(Genaro Molina/Los Angeles Times)
International air arrivals to L.A. County fell more than 30% from August to November of 2025. In Los Angeles, current international arrivals are fewer than in previous months, though the state saw an overall 3% increase last year.
The L.A. market “faces several challenges that are tempering hotel performance expectations,” said Ralph Posner, chief communications officer for the American Hotel and Lodging Assn.
“L.A.’s purported hotel underperformance is compounded by a unique combination of early FIFA block over-commitment creating artificial demand, concerns about visa barriers and operating costs,” he said. “The market was positioned as a flagship host city but is now absorbing a gap between expectation and reality.”
Surging hotel room costs in host cities are also a deterrent. For example, the Renaissance Hotel in Seattle, within walking distance of Lumen Field, is renting a King guest room for less than $300 the weekend before the World Cup. For the weekend of the U.S. game there, the rate is more than $1,000 for the same room.
To save costs, some fans are choosing to stay farther from the venues or opting for alternative lodgings such as Airbnbs. Airbnb’s chief financial officer said the World Cup is expected to be the largest event in the company’s history.
The hotel association said that even though initial indications are bad, things could still get better.
“We are hopeful that momentum will build over the next few weeks in the lead up to the games,” Posner said.
Times staff writer Kevin Baxter contributed to this report.
Business
Waymo suspends all freeway rides over safety
Waymo said that it’s pausing its robotaxi services on freeways in the U.S. as it updates its software to improve performance around construction zones and flooded roads.
Before the suspension, freeway operations were available in San Francisco, Los Angeles, Phoenix and Miami. The company said that street and other off-highway operations of Waymos will continue.
The company first confirmed the temporary pause to Reuters, and said that it was working to integrate recent technical learnings into software and expects to resume these routes soon.
“We are committed to being good neighbors for our riders and our communities. As part of that commitment, we make proactive decisions including temporarily pausing aspects of our service. We know riders count on us to get around, and we appreciate their patience as we work to get them where they’re going safely and reliably,” a Waymo spokesperson said in an email statement.
The company also paused operations in Atlanta, after a Waymo stopped in flood water. In early May, about 3,800 of Waymos autonomous taxis were recalled after a software defect caused some vehicles to drive into flooded roadways.
The suspension comes at a time when the Alphabet-backed company, which is based in Mountain View, Calif., has increased its pace of expansion into a number of new cities in the U.S. and across the globe, and getting them on freeways and local airports is important for expansion.
Competitors Tesla and Zoox have been playing catchup but don’t match the scale of Waymo yet.
The company said it has collected 170 million autonomous miles, with 13 times fewer injury-causing collisions compared with human drivers in the routes they operate in.
Waymo said it provides 500,000 trips every week, and aims to cross 1 million paid rides per week by 2026. While most Waymo models in use are Jaguar SUVs, it recently began testing a Chinese model Zeekr called Ojai in Los Angeles.
Waymo did not cite a specific instance that prompted the most recent recall, but the company has been forced to pause operations to improve software in several Southern states that have been hit by flash floods, including Texas, Tennessee and Georgia.
In 2025, Waymo recalled more than 1,200 vehicles due to a software defect resulting in minor crashes against obstacles in the road. Earlier this year, it faced renewed scrutiny after hitting a child outside a school in Santa Monica and running over a cat in San Francisco.
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