How long can Spirit Airlines survive

After reporting an 11th consecutive quarterly loss last week, Spirit Airlines survival has come under question.   The carrier is changing its strategy, creating three additional classes, including a premium class with first class seating, in addition to its traditional bare-bones fares with al-a-carte fees for other service.

The carrier lost $192.9 million in the second quarter on operating revenues of 1,280.9 million.  “Summer demand remains robust and load factors have been strong; however, significant industry capacity increases together with ancillary pricing changes in the competitive environment have made it difficult to increase yields, resulting in disappointing revenue results for the second quarter of 2024,” said Ted Christie, Spirit’s President and Chief Executive Officer.