Spirit Airlines' passengers are in for a surprise: The discount South Florida-based carrier announced Tuesday it intends to move into the upscale travel market with a new menu of premium seating designed to help the airline return to profitability.
Starting next month, the company, which is headquartered in Dania Beach and is the leading airline in passengers carried at Fort Lauderdale-Hollywood International Airport, said it will roll out a four-part fare schedule that in many instances will wrap free snacks, free checked bags and even free Wi-Fi into the ticket price. The new program effectively ends the airline's exclusive reliance on a rock-bottom fare scheme that forced passengers to buy ancillary services a la carte, although the bare-bones ticket option will remain as one of the fare categories.
"We listened to our Guests and are excited to deliver what they want: choices for an elevated experience and provide unparalleled value," CEO and president Ted Christie said in a statement issued by Spirit early Tuesday.
The effort comes after a federal judge earlier this year blocked Spirit's proposed $3.8 billion acquisition by JetBlue Airways on antitrust grounds. Now faced with a future as an independent carrier, Spirit is struggling to reverse a run of financial losses while it renegotiates its debt, works through a series of aircraft engine recalls and faces heavier competition from rivals that are encroaching on Spirit's traditional markets such as Florida.
Late next month, Spirit's recalibrated fare structure will look this way:
- "Go Big" will include an option focused on the airline's so-called Big Front Seats, a series of roomier seats that have occupied the front of its Airbus jetliners for several years. Previously, the airline has charged for solely booking the seat. Now the proposition will include free Wi-Fi, a checked bag, one piece of onboard luggage, and "unlimited" snacks and drinks including those with alcohol.
- "Go Comfy" will offer a standard seat with a vacant middle seat next to it to provide passengers with extra space. The offer includes earlier boarding, a snack, a nonalcoholic beverage, and checked baggage and a carry-on.
- "Go Savvy" tickets will allow customers either a checked bag or a carry-on.
- "Go" largely will be Spirit's original standard bare-bones ticket, where travelers buy their seat but pay additional fees for checked bags, seat selection, Wi-Fi and snacks.
All passengers will be allowed free booking changes.
Passengers can start booking tickets under the new program Aug.16 for flights Aug. 27 and beyond. On the day customers start flying under the new menu, Spirit will offer a dedicated, priority check-in line for its "Go Big" fliers, as well as for the carrier's Free Spirit Gold members, or Free Spirit World Elite Mastercard holders at 20 airports.
The airline also said it will continue its practice of allowing for cancellations and flight changes at no charge. while increasing the weight limit for checked bags to 50 pounds from the previous allowance of 40 pounds.
It will also extend the expiration time period for future travel vouchers to full year.
Fighting back
Henry Harteveldt, a San Francisco-based travel industry analyst and president of Atmosphere Research Group, said he "commends" Spirit for the move and predicted the airline may draw customers from bigger airlines including United, Delta, American and Southwest. They are the so-called industry "big four" that JetBlue and Spirit assailed as the two carriers unsuccessfully sought to make their case in federal court to combine forces through the proposed takeover.
"United is attacking Spirit in particular, being very aggressive with its use of basic economy fares to steal brand-new flyers," Harteveldt said. "Spirit is saying, 'we'll give the big airlines a taste of their own medicine.'"
"It will be interesting to see how consumers respond," he added.
"These changes will convince some travelers who are unhappy with what [bigger] airlines offer," Harteveldt said. "If they like it maybe they will return and become more loyal to Spirit, especially with the 'Go Comfy' and 'Go Big' products."
"I know everyone likes to make fun of Spirit," he said. "The truth is, Spirit is a reliable airline. It has very dedicated employees."
But inflation has been taking its toll on lower-income consumers who seek out discount fares, with some flying less than they did when the COVID-19 pandemic receded. Some aren't flying at all, which is a bad sign for airlines that rely on bargain-hunting travelers.
Only time will tell whether Spirit's initiative pays dividends.
Its announcement came two days before a scheduled financial conference call with industry analysts on Thursday, when management discloses second-quarter financial results.
In a regulatory filing two weeks ago, the airline warned it expects an adjusted operating loss of $160 million to $173 million, which is wider than an earlier forecast of $121 million to $145 million. Revenues were expected to come in at $1.28 billion, a decline from its previous forecast of $1.32 billion to $1.34 billion.
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