Current:Home > MyAiling Spirit Airlines drops some junk fees in hopes of drawing travelers-LoTradeCoin
Ailing Spirit Airlines drops some junk fees in hopes of drawing travelers
View Date:2024-12-23 22:35:06
Spirit Airlines, known for its cheap fares and à la carte flight upgrades, is rolling out another perk it hopes will draw travelers: fewer fees.
In May, the Miramar, Florida-based carrier stopped charging customers for canceling and changing flights, a move Spirit executives expect will pay off despite the loss of fee revenue. The airline also increased the weight for checked bags from 40 pounds to 50 pounds, the industry standard.
Although the airline's domestic business is growing, it saw a dip in traffic for international flights in the first quarter, federal transportation data shows.
"What we've seen over time is that less people are actually flying on Spirit," Matt Klein, the airline's chief commercial officer, told CBS News senior transportation correspondent Kris Van Cleave. "So we believe the changes we're making are about attracting new customers."
Klein added that eliminating fees was also about lowering fares for loyal Spirit passengers, noting that "it's something our customers wanted."
Spirit isn't alone in dropping fees. Delta and American Airlines, which had axed their change flight fees early in the pandemic, eliminated cancellation charges in late 2023. Budget carrier Frontier Airlines, a direct competitor to Spirit, also cut cancellation fees in May.
Along with nixing charges that many travelers regard as onerous, airlines are also facing government scrutiny. Biden administration officials have targeted a range of so-called junk fees, and in May announced final consumer protection rules that will require airlines and travel agents to reveal service charges upfront, among other things. As a result, airlines must now disclose the fees on the first website page where they quote the price for a flight.
Travel experts and consumer advocates have also long criticized carriers for using "drip pricing" to mask the true price of airfare.
To be sure, eliminating cancellation and change flight fees will cost Spirit big bucks — in 2023, the carrier generated $150 million in those fees alone. But one industry analyst said low-fare airlines like Spirit must do what it takes to retain customers. JetBlue in March abandoned a bid to buy Spirit after a federal judge blocked the $3.8 billion deal over concerns the merger would hurt competition in the airline industry.
Collapse of the deal left Spirit reeling, and the carrier's financial performance has continued to skid amid mounting competition from larger airlines. For the first quarter, Spirit reported a net loss of $142.6 million, up from a loss of $103.9 million in the year-ago period, while operating revenue dipped roughly 6% to $1.3 billion. Its stock prices, which hovered above $16 at the start of the year, has descended to $3.64.
"Right now, Spirit and Frontier are fighting, fighting to stay in business," Henry Harteveldt, an airlines industry analyst at Atmosphere Research, told CBS News. "They're reacting to the changes that larger airlines have made."
- In:
- Travel
- Spirit Airlines
- Airlines
Khristopher J. Brooks is a reporter for CBS MoneyWatch. He previously worked as a reporter for the Omaha World-Herald, Newsday and the Florida Times-Union. His reporting primarily focuses on the U.S. housing market, the business of sports and bankruptcy.
TwitterveryGood! (5959)
Related
- Flurry of contract deals come as railroads, unions see Trump’s election looming over talks
- Saturday Night Live’s Colin Jost will be featured entertainer at White House correspondents’ dinner
- Kansas Wesleyan University cancels classes, events after professor dies in her office
- Veteran NFL assistant Wink Martindale to become Michigan Wolverines defensive coordinator
- Kirk Herbstreit berates LSU fans throwing trash vs Alabama: 'Enough is enough, clowns'
- Dartmouth men’s basketball team will hold union vote on March 5
- Earthquake reported near Malibu, California Friday afternoon; aftershocks follow
- A stepmother says her husband killed his 5-year-old and hid her body. His lawyers say she’s lying
- Louisiana man kills himself and his 1-year-old daughter after a pursuit
- Super Bowl 58: Predictions, picks and odds for Kansas City Chiefs vs. San Francisco 49ers
Ranking
- Lala Kent Swears by This Virgo-Approved Accessory and Shares Why Stassi Schroeder Inspires Her Fall Style
- 76ers president Daryl Morey 'hopeful' Joel Embiid can return for possible postseason run
- Optimism about the U.S. economy sends stocks to a new record
- Police in a Maine city ask residents to shelter in place after gunfire at a busy intersection
- New Jersey will issue a drought warning after driest October ever and as wildfires rage
- Lakers let trade deadline pass with no deal. Now LeBron James & Co. are left still average.
- A 'Love Story' turned 'Red': Fireball releases lipstick inspired by Taylor Swift, Travis Kelce
- Girlfriend of Illinois shooting suspect pleads not guilty to obstruction
Recommendation
-
'I heard it and felt it': Chemical facility explosion leaves 11 hospitalized in Louisville
-
Alicia Keys and Swizz Beatz want you to see the 'Giants' of art in their collection
-
Brittany Mahomes makes debut as Sports Illustrated Swimsuit model
-
Texas attorney sentenced to 6 months in alleged abortion attempt of wife's baby
-
SNL's Chloe Fineman Says Rude Elon Musk Made Her Burst Into Tears as Show Host
-
What is Wagyu? The beef has a 'unique, meltaway texture' but comes with a heavy price tag
-
Kansas Wesleyan University cancels classes, events after professor dies in her office
-
As coach Chip Kelly bolts UCLA for coordinator job, Bruins face messy Big Ten future