"Its debts and costs will be reduced, allowing the airline to keep fares low while doubling down on two of the industry's biggest moneymakers: premium seats and loyalty programs. This includes new Spirit First loungers in the first few rows, extra-legroom premium economy seats, and expanded loyalty perks, giving travelers more choices while generating additional revenue."
"It's betting that a mix of new premium offerings and cheap no-frills seats will attract price-sensitive leisure travelers while building a stickier loyalty program to draw more frequent flyers and business customers."
"American, Delta, and United have led this trend by doubling down on expanding and revamping their own high-dollar premium seats. First class on Delta's new Airbus A321neo, for example, will take up almost half the plane."
Spirit Airlines is restructuring its business model while emerging from Chapter 11 bankruptcy in late spring or early summer. Rather than maintaining its pure budget approach, the airline is introducing premium offerings including first-class lounges, extra-legroom economy seats, and expanded loyalty perks alongside its traditional no-frills budget fares. This hybrid strategy mirrors approaches used by major carriers like American, Delta, and United, which have significantly expanded premium seating. The restructuring reduces Spirit's debts and operating costs, enabling the airline to maintain competitive low fares while generating additional revenue from premium services. The strategy aims to attract both price-sensitive leisure travelers and frequent flyers seeking premium experiences, creating a more sustainable business model.
#airline-restructuring #premium-seating-strategy #budget-carrier-evolution #loyalty-programs #bankruptcy-emergence
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