Thursday, 20 January 2022

If Everyone Hates Spirit Airlines, How Is It Profitable?

Everybody loves to score good deals and save money, get discounts, or get some points that offer special rewards. Spirit Airlines have mastered this ideology and offer some of the lowest airfare deals ever in the complete airline market, which has made Spirit airlines reservations, one of most chosen airlines, especially for cheap flights online. As per multiple surveys, it is found that Spirit Airline has the highest complaint rate per 10,000 passengers, but it still maintains the largest profit margins in the industry.

Spirit airlines has even been commented a mix of positive and negative, such as-
‘Last in Service, but first in profit & demand’
‘Airline that people love to hate’
‘Spirit, the Most Profitable and Complained about Airline’

so, how can a company that customers say they despise continue to beat competitors in terms of profit margin and sales growth, for many years? Because of the alignment of the business and operating models, Spirit has a strong competitive advantage (low-cost tickets).

When in the year 2006, the airline transformed into a ULCC (ultra low cost carrier), the airline grew spontaneously. The main idea that led the airline to earn such huge profits and reach such great heights was-

Spirit Airlines Flight Booking

• ‘Unbundling’, and Lowering Ticket Prices As Much As Possible

An unbundled fare only promised to get you from your origin to a destination of your choice, instead of conceiving of a flight as a way to travel from one place to another along with a set of frills and luxuries (like Cokes and snacks, maybe an in-flight movie) included in the ticket price. Everything else was additionally charged: utilising the overhead bin, ensuring your group's seats were together, printing your ticket at the airport rather than at home, even water is $3. "You don't have to pay for stuff you don't use, claiming it is a more equal approach. It is found that every third Spirit passengers never check luggage, so why should they be forced to finance infrastructure? Thus they made ‘‘Pay only for what you want'’, a policy, which even today helps Spirit Airlines earn huge profits.


• Transparency

They are very transparent about the flight details and airline policies, which helps passengers to easily understand and book Spirit Airlines flights without any hassle. You are told about each and every detail in terms & conditions, privacy policy, etc. Even a pop-up is there when you make Spirit flight reservations, so there are no discrepancies in between when you make flight reservations.


• Spirit Airlines 24x7 Support Over the Spirit Airlines Customer Care Number

Spirit Airlines is available for its passengers all the time at the spirit airlines customer service number - 855-728-3555. When you are not able to reach out to them directly at the mentioned contact number, then, you can get in touch with us at +1-888-678-0392. We will help you throughout your travel  from reservation to accommodation.


• Great In-Flight Service Options
Increased number of available seats from 138 to 145, variety of foods, wifi on a few aircrafts which means increased entertainment options. They also offer assistance for people with disabilities. These all are charged.


So, no matter what people comment or how negative they may make Spirit Airlines look in the market, its operating margin has been continuously above the industry average since 2009, culminating at an incredible 24 percent in 2015. (Compared with an industry average of 15 percent ). In 2009, revenue was around $700 million, but by 2018, it had risen to $3.2 billion. And it is still growing. Spirit airline just placed an order for 100 new Airbus planes — and the governor of Florida paid a visit as the firm broke work on a new, $250 million campus headquarters near Fort Lauderdale.

Even in the year 2021, with the widespread of covid19, Spirit made a huge profit of $15M. Which means the idea that it has a negative reputation or is not worth traveling is totally outdated.

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If Everyone Hates Spirit Airlines, How Is It Profitable?

Everybody loves to score good deals and save money, get discounts, or get some points that offer special rewards. Spirit Airlines have maste...