Spirit's Ghost Haunts a Bullish Market as Mooney Eyes Resurrection

Seven weeks after Spirit Airlines went dark, the carrier that defined American budget travel is back in the headlines — this time as a name on an auction block, and a cautionary tale shaping a suddenly buoyant industry.

Texas-based Mooney International has submitted a bid to acquire the Spirit brand and related assets out of bankruptcy liquidation, court filings show. Mooney said its proposal would combine operations involving Spirit Airlines, Mooney International and SEAir under a shared focus on affordable air travel, framing the move as the next chapter rather than an epitaph. The bankruptcy court in New York's Southern District will decide whether the yellow jets fly again. Meanwhile, the estate is busy carving up the carcass: Spirit has begun preparing auctions of its LaGuardia slots, loyalty program, operating equipment and corporate real estate.

The collapse left a mark on consumers. A Business Insider analysis found airfares rose an average of about $19, or 14%, across roughly 90 routes Spirit exited between 2024 and 2025 — proof of the so-called "Spirit Effect" that the Justice Department once invoked to block the JetBlue merger.

For the survivors, the mood is jubilant. Wall Street has turned sharply more upbeat on American Airlines, with UBS, Deutsche Bank, Morgan Stanley, Bank of America and Jefferies all lifting price targets. AAL jumped roughly 6% after announcing plans to equip more than 500 aircraft with SpaceX's Starlink Wi-Fi starting in the first quarter of 2027, and analysts cited strong demand, higher ticket prices, lower fuel costs and flat capacity. One carrier's funeral, it turns out, is another's tailwind.