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The Death of Spirit Airlines: A Symptom of Corporate Failure
Last week on Receipts Live with Catherine Rampell, I expressed relief that Spirit Airlines had gone out of business. Let me clarify: I don’t celebrate job losses, so I’m genuinely sorry for the employees affected. However, I’m relieved that the corporate entity known as Spirit Airlines is gone.
Because Spirit Airlines was terrible. And when a company fails, it often signals that the market has rejected its unsustainable practices. That’s a rare glimmer of hope in today’s corporate landscape.
Today, we’re diving into a broader conversation about business, airlines, tech monopolies, and the erosion of liberal democracy. It’s a journey worth taking.
Understanding 'Enshittification': From Amazon to Corporate America
A few years ago, author and activist Cory Doctorow introduced the concept of enshittification to describe how Amazon had transformed from a customer-focused retailer into a profit-driven ad platform. His theory now extends beyond Amazon, explaining the decline of industries across the U.S.
In Amazon’s early days, its mission was to be “Earth’s most customer-centric company.” Today, it’s an enshittified platform where paid ads dominate search results, and quality takes a backseat to revenue.
For example:
- Search for “cat beds” on Amazon: The first screen is entirely ads—including one for a dog carrier, a product Amazon itself manufactures and sells.
- Scroll down: You’ll find “organic” results, Amazon’s best guess at relevant products.
- Scroll further: Another screen of ads labeled “Highly rated.”
- Keep scrolling: More ads appear, including repeats of earlier promotions.
On the first five screens of results, over 50% of the space is dedicated to ads or Amazon’s own products.
How Did We Get Here?
Doctorow’s theory explains that Amazon built a $31 billion ad business within its retail platform. This shift changed its incentives:
- Original goal: Provide the best customer experience to drive sales.
- New goal: Maximize ad revenue, even if it means burying useful results under ads.
Amazon’s growth gave it monopoly and monopsony power—control over both buyers and sellers. This allowed it to extract rents from every transaction, making the platform worse for users but more profitable for itself.
From Tech to Every Industry: The Spread of Enshittification
Doctorow expanded his theory in the Financial Times in 2024, framing enshittification as a “great enshittening” sweeping across industries. The pattern is clear:
- Platforms prioritize profits over users: Whether it’s airlines, tech giants, or retailers, companies extract value until customers abandon them.
- Monopolies stifle competition: When a few corporations control an industry, they face no pressure to improve.
- Consumers lose out: Higher prices, worse service, and fewer choices become the norm.
Spirit Airlines’ collapse is just one example. Its business model—packed flights, hidden fees, and poor service—exemplifies how enshittification erodes trust in entire sectors.
What’s Next? Can America Reverse the Trend?
The question now is: Can anything stop enshittification? Doctorow’s work suggests that regulatory intervention, antitrust enforcement, and consumer pressure are the only ways to reverse the trend. Without these, industries will continue to prioritize short-term profits over long-term sustainability.
For now, the death of Spirit Airlines serves as a cautionary tale—and a rare moment of hope in an era of corporate decline.