Spirit Airlines can lift the spirits of people seeking sunshine.
The ultra low-cost carrier (ULCC) operates more than 250 daily
flights between major US cities and popular vacation spots in South
Florida, the Caribbean, and Latin America, serving nearly 80
destinations. It operates an all Airbus fleet of nearly 55
single-aisle aircraft, including A319s, A320s, and A321s. Spirit
capitalizes on an ancillary service model, charging separately for
baggage, advance seat selection, and other travel-related upgrades.
In addition to scheduled service, the company partners with
third-party vendors to offer a slate of vacation packages via its
The company's route network includes 191 markets served by 56
airports throughout North America, Central America, South America,
and the Caribbean. Revenue generated from the US accounts for
nearly 90% of Spirit's revenue.
Spirit Airlines has its executive offices and headquarters
located in a leased facility in Florida. It has additional
maintenance operations in leased facilities in Detroit; Chicago;
Atlantic City, New Jersey; Dallas; Houston; and Las Vegas,
Sales and Marketing
Spirit Airlines sells through its website, an outsourced call
center, and third-party travel agents. Its spirit.com site accounts
for about two-thirds of sales.
With the Great Recession that decimated the airline industry far
behind it, Spirit is enjoying uncharted growth over the years.
Revenues jumped 11% from $1.93 billion in 2014 to $2.14 billion in
2015, a historic milestone for the company. The spike in revenue in
2015 was driven by a 2% increase in passenger revenue. Non-ticket
revenue also climbed by 24% due to a 27% increase in traffic and an
increase in baggage revenue per passenger flight segment.
Profits also surged 41% from $225 million in 2014 to peak at a
record-shattering $317 million in 2015 due to the higher revenue
and decreased increase expenses. In addition, its cash flow from
operations skyrocketed by 82% from 2014 to 2015.
To maintain its impressive growth trajectory, Spirit is expanding
its city destination network while also concentrating its resources
on the growing Caribbean and Latin American markets. Like most
carriers within its industry, Spirit's top issue is controlling
costs in order sustain a profit from its low fares.
To this end, the company has moved to an aggressive unbundling
strategy to stimulate passenger demand and revenues. Unbundling
allows passengers to pay separately for products and services that
they want to use. Charging for such extras as onboard beverages and
snacks enables Spirit to offset its low ticket prices as well as
maintain its competitive market presence.