Spirit Airlines sues DOT over Washington National slot allocation

Spirit Airlines has filed a lawsuit against the Department of Transportation (DOT), alleging improper allocation of new long-haul flight slots at Washington's National Airport (DCA). The dispute centers on DOT’s recent decision to award five "beyond-perimeter" slots—exemptions to the 1,250-mile flight restriction—to major carriers, excluding smaller airlines like Spirit.

Slot allocation are political

In 2024, Congress authorized DOT to grant five additional beyond-perimeter slots at DCA. DOT tentatively awarded these slots to:

• American Airlines: San Antonio
• Alaska Airlines: San Diego
• Southwest Airlines: Las Vegas
• Delta Air Lines: Seattle
• United Airlines: San Francisco

Spirit Airlines had proposed a route to San Jose, California, but was not selected. DOT’s allocation favored carriers already holding significant slot shares at DCA, prompting objections from Spirit, Frontier, and JetBlue, as reported by View from the Wing.

Spirit’s legal argument

Spirit contends that DOT misinterpreted eligibility criteria for the limited incumbent slot, which is intended for airlines holding fewer than 40 slots at DCA. Although Spirit does not currently operate at DCA, it previously held slots there, classifying it as a limited incumbent under federal regulations. The airline argues that DOT erroneously awarded this slot to Alaska Airlines without considering Alaska’s codeshare agreement with American Airlines, which collectively exceeds the 40-slot threshold.

A turbulent financial outlook

While Spirit fights for a foothold at DCA, its financial health is deteriorating. The airline recently exited Chapter 11 bankruptcy after restructuring $795 million in debt, but its 2024 financial results paint a grim picture.

• Spirit reported a $1.2 billion net loss in 2024, compared to $447 million in 2023.
• Operating revenue fell 8.4% to $4.9 billion due to lower fares and reduced traffic.
• The airline’s negative 22.5% operating margin is one of the worst in the industry.
• Costs soared, with non-fuel expenses per seat mile up 12.9% due to rising wages, aircraft rent, and landing fees.

Bondholders have injected $350 million into the airline, but with Spirit hemorrhaging $100 million per month, analysts question how long it can survive independently, reports One Mile at a Time.

Recent safety concerns at DCA

The legal dispute unfolds amid heightened safety concerns at DCA. On January 29, 2025, a mid-air collision occurred between an American Airlines regional jet and a US Army Black Hawk helicopter over the Potomac River near DCA, resulting in 67 fatalities. Investigations revealed that the helicopter lacked Automatic Dependent Surveillance-Broadcast (ADS-B) technology, limiting air traffic controllers’ ability to monitor its altitude accurately.

Following the crash, pilots reported multiple Traffic Collision Avoidance System (TCAS) anomalies in the DCA airspace. Some attributed this to increased congestion from new slot allocations. The National Transportation Safety Board (NTSB) is investigating whether recent changes at DCA, including the new beyond-perimeter flights, contributed to the airspace strain.