U.S. budget airlines struggle for survival in tough time
WASHINGTON, July 29 (Xinhua) -- U.S. budget airlines like Spirit and Southwest have chosen to lay off pilots, cut flights and change business models for Kenya breaking news | Kenya news today |..
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U.S. budget airlines, including Spirit and Southwest, are taking drastic measures such as pilot layoffs, flight reductions, and business model changes to survive amidst rising costs and shrinking markets.
- Spirit Airlines announced the furlough of 270 pilots, with another 140 pilots downgraded, starting October 1, in response to financial restructuring after its November 2024 bankruptcy filing.
- Southwest Airlines is abandoning its five-decade-long open seating policy for flights booked beyond January 27, 2026, and cutting 15 percent of its staff (approximately 1,750 people) due to falling demand and recent earnings shortfalls of over 11 percent.
- Facing sluggish demand for low-cost flights, carriers like Southwest are implementing new charges, such as bag fees and basic economy products, and are exploring opportunities in premium travel, recognizing that luxury passengers offer a more reliable revenue source.
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US Tariffs Threaten African Economies and American Consumers - July 2025
Economist Leslie Dwight Mensah of the Institute for Fiscal Studies has warned that African economies are under threat from the new U.S. tariff war, with the impact varying based on the scale of trade relationships and potentially eliminating some export trade. Simultaneously, US President Donald Trump's new tariffs, or extra taxes on imported goods, are threatening to increase prices for American consumers. While some major trading partners have seen tariff rates reduced, other countries like Canada face significant increases, potentially impacting the cost of various products. This comes as U.S. budget airlines, including Spirit and Southwest, are already struggling for survival and taking drastic measures like pilot layoffs and flight reductions amidst rising costs and shrinking markets.
