I'm not saying prices aren't going to increase. I am saying that it won't increase enough for stocks to increase. My argument is: 1. There will be limited increased demand from Spirit customers. With oil prices causing increases everywhere, the majority just won't fly. 2. I bet that prices on routes for airlines whose sole competition isnt spirit, then they weight the price difference of spirit less. So, for the most common routes where airlines make most of their revenue, costs related to spirit not being there will be lower. On the margin? Sure, flights like MSP to DTW where delta really only competed with Spirit and sun country, then prices might go up, but again I think that those routes are small and infrequent enough that they don't meaningfully impact bottom line on major airlines. My bet aggregate airline prices do not increase meaningfully from Spirit and are almost entirely correlated with oil.

---

Ah damn, I missed when airline stocks jumped with improved margins from lucrative routes like MSP to DTW!

---

Of course pricing algorithms would check for alternative flights to destination Less alternatives = higher prices Your understanding of customer behavior is … none When spirit stopped flying MSP to DTW, competitors raised prices for upto %50 within days

---