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Why the model for low-cost airlines may be 'evaporating'

Yahoo Finance
Summary
Nutrition label

83% Informative

Spirit Airlines rejected a $2.16 billion takeover bid from Frontier this week .

The low-cost carrier model works by offering cheaper seats than traditional airlines to domestic and near- US destinations while charging fees for items like checked bags, seating selection, and snacks or drinks.

Southwest CEO Bob Jordan said the airline was "experiencing above-normal unit cost inflation, most notably in market-driven wage rates".

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