The team flew only six air shows in 1973 and was grounded for some time. Due to the 1973 oil crisis, they switched to the more economical T-38 Talon for the 1974 season, as five T-38s used the same amount of fuel as one F-4 Phantom. The switch saw an alteration of the flight routine to exhibit the aircraft's maneuverability in tight turns, and ended the era of the black tail on the No. 4 slot plane, now regularly cleaned and shined like the others.

In 1982, the Thunderbirds suffered a catastrophic loss during pre-season training on 18 January.[1] While practicing the four-plane diamond loop, the formation impacted the ground at high speed, instantly killing all four pilots: Major Norman L. Lowry (commander/leader), Captain Willie Mays, Captain Joseph N. "Pete" Peterson, and Captain Mark Melancon.[7][8] The cause of the crash was determined by the USAF to be the result of a mechanical problem with the No. 1 aircraft's control stick actuator. This resulted in insufficient back pressure by the formation leader on the T-38 control stick during the loop. Visually cueing off the lead aircraft during formation maneuvering, the wing and slot pilots disregarded their positions relative to the ground.-Exerpt from Wikipedia