The U.S. airline industry is shifting, with major carriers like Delta and United attracting both premium and budget travelers, challenging smaller airlines, particularly budget ones. The bankruptcy of Spirit Airlines underscores the difficulties faced by low-cost carriers amid changing consumer preferences and economic pressures, as Spirit has lost over $2.2 billion since 2020. Budget airlines are struggling with increased operational costs, market oversaturation, and a need to adopt premium strategies. Meanwhile, international budget airlines are recovering better, highlighting the contrasting perceptions of low-cost travel across regions. The future of U.S. budget airlines remains uncertain as they adapt to evolving demands.