Economics in the News – April 27 – May 3, 2026
Economics impacts our lives every day. Below are some of the top storylines from this past week related to economics.
o Spirit Airlines has landed its final flight. The low-fare airline announced that it was ending all operations, effective immediately. Rising labor and maintenance costs has led to financial struggles for Spirit in recent years, as the airline filed for bankruptcy two consecutive years. In recent weeks, while trying to emerge from its second bankruptcy as a smaller company, the airline was faced with rising costs of jet fuel due to the US war in Iran.
The shutdown leaves 17,000 Spirit employees without jobs. Many of the flight crew was left stranded when the company ended its operations, as some airlines pitched in to help get those employees home. Customers who had purchased flights that won’t operate will receive a refund. Spirit was known as the ultimate low-cost carrier, with its low fares, no frills approach. They charged for services and amenities that other airlines offered for free. Spirit operated as the eighth largest US-based carrier, with a 3.4 percent market share. In 2024, former President Joe Biden’s Justice Department blocked a proposed merger with JetBlue Airways in part because of Spirit’s ability to pressure other airlines to lower fares. [The New York Times]
o In a time of heightened geopolitical tension throughout the Western World, European leaders are increasingly preparing their countries for war. As President Donald Trump threatened to remove troops from Germany amid European leaders choosing against joining US efforts in Iran, along with Russian President Vladimir Putin and Russia’s current five-year war with Ukraine, tension is the highest its been throughout Europe in years.
Poland has taken the charge in preparing its country for future war. It has increased its defense spending to five percent of GDP, buying military equipment. In addition, it has expanded its military. Poland is unique because it has seen millions of Ukrainians cross into their country as the Russia-Ukraine war has continued. But for many European leaders, it’s a balance of having a prepared defense in case of war while managing a peacetime economy. The effort becomes even more strenuous when factoring in economic strain – the slow growth and heavy debt – that leaders are faced with while also trying to boost defense. [The New York Times]
o BlackBerry was once a pioneer among phones, as it was among the first phones that enabled business people to check emails in the palm of their hands. The company once at the forefront of the BlackBerry – Research in Motion – is making a comeback after abandoning hand-held devices more than a decade ago.
Now known as QNX, the technology that once powered the Blackberry is behind the technology that exists in modern cars. It’s prevalent in the safety features – from the collision warnings, the blind-spot notifications, the adaptive cruise control and steering assistance. QNX is the operating system behind all of that technology, and it’s trusted by the world’s largest automakers. The company is making money again too. It’s reported profitable earnings in four consecutive quarters for the first time since the BlackBerry was competing with the iPhone. [The Wall Street Journal]
o Outgoing Federal Reserve chairman Jerome Powell indicated that he will remain on the Fed’s board as a governor following his May 15 departure as chairman. His decision comes amid President Donald Trump’s attacks on the Fed’s independence and denies Trump the opportunity to fill a vacant role.
Powell’s term as chair ends May 15, as Trump’s selection Kevin Walsh is primed to become the next chairman, once he is confirmed. Powell’s term as governor ends in 2028. It would mark the first time since 1948 that the outgoing Fed chairman remained as a governor. [The Washington Post]
o LIV Golf – the breakaway golf tour that is seeking to rival the PGA Tour – could be in financial trouble. The Public Investment Fund (PIF) of Saudi Arabia announced that it will no longer fund the venture following the 2026 season. In addition, LIV chairman, co-founder and the governor of Saudi Arabia’s PIF fund Yasir Al-Rumayyan will no longer serve as chairman of LIV Golf.
The venture, which was created in 2021 and started playing tournaments worldwide in 2022, has reportedly lost $5 billion since its inception and has counted nearly entirely on the PIF for funding to recruit players and the generous purses offered at tournaments. LIV reportedly remains committed to moving forward with plans to sell the equity of its 13 teams and draw other outside investments into the league. The league postponed its event in New Orleans, originally scheduled for June, citing a busy sports calendar season. The next event is scheduled to take place just outside Washington, D.C. and begins May 7. [The Athletic]
