Skybus Airlines

Skybus Airlines' April 2008 closure came after only 12 months of operation. The ultra-low-cost carrier sold $10 tickets and charged for everything else. When fuel prices spiked 40% in early 2008, Skybus's thin margins evaporated. The company that advertised 'cheap fares, cheap service' couldn't survive input cost volatility. Skybus demonstrated that ultra-low-cost models require cost stability that fuel markets don't provide.