Airlines had the perfect conditions for jacking up fares. Then Spirit collapsed | CNN Business

Jet fuel prices nearly doubled. Airlines cut flights. Travelers were still buying tickets. That was already a pretty good recipe for higher airfares. And then, Spirit Airlines went out of business. Passengers were already paying more to fly – even before the industry lost the budget airline famous for pushing fares lower. This was shaping up to be a very expensive summer to fly. Spirit’s demise will probably accelerate that trend. US airfares were already up sharply the week before the discount airline shut down, travel booking site Kayak and investment firm Raymond James reported. The conditions were perfect for airlines to raise fares – bad news for bargain-seeking travelers. Jet fuel: Jet fuel prices are up 84% from January, according to Airlines for America, the US industry’s trade group, adding to costs. The International Energy Administration warned that jet fuel shortages could become a reality in a couple of weeks in Europe, which gets most of its jet fuel from the Middle East. Asia could face the same problem, because it uses Middle Eastern oil to create jet fuel at its refineries. American refiners ship jet fuel overseas, pushing US prices higher, too. Cut flights