Spirit Airlines has made a name for itself as one of the most affordable airline options in the U.S. However, if you’ve ever flown with them or even browsed their ticket prices, you may have wondered, “How do they keep their fares so low?” In this article, we’ll explore the unique business model and strategies that enable Spirit Airlines to offer some of the cheapest flights in the industry.
1. Ultra-Low-Cost Carrier (ULCC) Model
Spirit Airlines operates as an ultra-low-cost carrier (ULCC), a business model designed to strip down travel to its bare essentials. This model focuses on keeping base fares as low as possible while charging for additional services that are typically included in the price of a ticket on other airlines. This means passengers can get an exceptionally low price on their ticket, but extras—such as seat selection, baggage, snacks, and even printing your boarding pass at the airport—come with fees.
The ULCC model is built around the idea of a no-frills experience. By offering a “bare-bones” flight service, Spirit can lower its overhead costs and pass the savings on to customers in the form of cheaper tickets.
2. Charging for Additional Services
A key factor in Spirit’s affordability is its à la carte pricing strategy. This approach allows passengers to pay only for the services they use, which helps keep the base ticket price low. Here are some of the services that Spirit charges extra for:
- Baggage Fees: Spirit charges for both checked and carry-on bags. This is a major area where they differentiate from traditional airlines, which often allow a free carry-on.
- Seat Selection: Passengers who want to choose their seat in advance have to pay for this privilege. Otherwise, seats are assigned randomly at check-in.
- Food and Drinks: Unlike other airlines that may offer free snacks and beverages, Spirit charges for any food or drinks consumed during the flight.
- Boarding Pass Printing: If you forget to print your boarding pass at home, Spirit will charge you to print it at the airport.
By unbundling these services, Spirit Airlines allows passengers to pay for what they want and avoid paying for things they don’t use.
3. High-Density Seating
One of the reasons Spirit Airlines can keep costs so low is by maximizing the number of passengers they can fit into each aircraft. Spirit uses high-density seating, which means more seats are packed into the airplane. This leads to less legroom and comfort for passengers but increases the airline’s capacity and efficiency.
For example, a typical Spirit Airlines aircraft, such as an Airbus A320, can accommodate 178 to 182 passengers, compared to a full-service airline that might have 150-160 seats in the same type of aircraft. This strategy helps Spirit generate more revenue per flight while keeping operational costs low.
4. Newer, More Fuel-Efficient Planes
Operating newer, more fuel-efficient planes is another way Spirit manages to keep costs low. Spirit’s fleet is composed of newer Airbus A320 and A321 models, which are designed to consume less fuel per mile. Fuel is one of the biggest operational costs for any airline, so by flying fuel-efficient planes, Spirit can pass those savings along to passengers.
In addition, the standardization of their fleet around a single manufacturer (Airbus) simplifies maintenance and repairs, reducing further costs.
5. Point-to-Point Routes
Spirit Airlines primarily operates on a point-to-point route system, which differs from the traditional hub-and-spoke model used by major carriers like American Airlines or United. In the hub-and-spoke model, passengers are often routed through a major airport hub before reaching their final destination, which can involve longer layovers and extra travel time.
Spirit’s point-to-point system reduces the need for connections and simplifies operations. The airline avoids large, expensive hub airports in favor of secondary airports, which often have lower fees and fewer delays. This efficiency not only saves on operational costs but also allows Spirit to offer more direct routes at lower prices.
6. Minimal Customer Service Costs
Spirit Airlines is notorious for its minimalist approach to customer service. Their staff is often stretched thin, and many of their customer service operations, such as checking in and purchasing tickets, are handled online. While this approach may lead to a less personal customer experience, it reduces the airline’s labor costs significantly.
In addition, Spirit has strict policies about ticket changes, cancellations, and refunds, which means fewer staff hours are needed to handle these requests. Although this can be frustrating for passengers, it contributes to the airline’s ability to keep prices low.
7. High Fees and Revenue from Extras
While Spirit’s ticket prices may seem extremely low, the airline makes a substantial amount of revenue through fees and optional services. In fact, Spirit often earns more revenue from these “extras” than from the base fare itself. These additional charges, which include baggage fees, seat selection, and early boarding, make up a significant portion of the airline’s profit.
This reliance on ancillary revenue is a hallmark of the ULCC business model. It allows the airline to keep the base fare competitive while still generating healthy profits.
8. Efficient, Lean Operations
Spirit Airlines runs a very lean operation, keeping costs down by cutting out many of the perks and luxuries associated with traditional airlines. Their flights often have quick turnaround times at airports, meaning planes spend less time on the ground and more time in the air. The faster an aircraft can complete a trip and be ready for the next one, the more flights an airline can operate, boosting revenue potential.
Additionally, the airline minimizes its overhead by using more automation and relying on fewer employees per passenger compared to other airlines.
Conclusion: The True Cost of Flying Spirit
Spirit Airlines is able to keep its prices so low by following a highly efficient, no-frills business model. The airline cuts costs through its ULCC strategy, including charging for extras, maximizing seating, and operating newer, fuel-efficient planes. While passengers may pay less for a base ticket, the experience is quite different from flying with a traditional airline.
For travelers who are willing to sacrifice comfort and extras for a lower fare, Spirit is a great option. However, it’s important to remember that once all the extra fees are factored in, the overall cost may not always be as cheap as it first appears.
