How Spirit Airlines’ shaky future could make American travel worse


This is because Spirit Airlines is the only commercial carrier that provides service to LBE.

“Since they’re the only ones, they’re really important, and it would be devastating if they went down,” said Gabe Monzo, the airport’s executive director.

Spirit has reduced its LBE flight schedule from several daily flights to one direct flight to Orlando.

But Monzo says service will likely resume to Myrtle Beach in the spring.

A 2022 Pennsylvania Department of Transportation study estimated the regional economic impact of passengers arriving and departing from LBE at $213.9 million. Monzo says $100 million of that came from Spirit Airlines passengers.

Soul bargain fare flyers downstairs

LBE won’t be the only one left in trouble if Spirit can’t find a way forward.

Spirit Airlines fills a niche for leisure travelers, college students, missionaries, and others looking for low-cost fares.

Professor Jesse Ramsey, a professor of management at Florida Gulf Coast University in Fort Myers, has two stakes in Spirit Airlines: He uses the airline for family vacations from service at nearby Southwest Florida International Airport (RSW), and he incorporates Spirit into his courses.

From a family standpoint, he said Florida without the spirit hurts both ways. Its absence from the market is likely to raise prices for tourists coming from the north. But it would also cut off affordable vacation options for South Florida families heading to the Caribbean.

“This would be bad for our area if something happened to Spirit from a price perspective. They’re usually our low-cost leader. If you want a family vacation out of here, this is your airline of choice,” Ramsey said. .

HOUSTON, TX – NOVEMBER 21: Travelers move their luggage toward the Spirit Airlines check-in desk at George Bush Intercontinental Airport, Tuesday, November 21, 2023, in Houston. (Jason Fochtman/Houston Chronicle via Getty Images)

Houston Chronicle/Hearst Newspapers via Getty Images | Hearst Newspapers | Getty Images

From a South Florida tourism perspective, Spirit is a lifeline.

“It’s not good for us. South Florida really depends on them. It’s a healthy market with a couple of low-cost providers competing with each other,” Ramsey said, referring to Southwest Airlines, which also flies to RSW. “It’s not good for us,” Ramsey said. He also keeps prices low, he says. He has just returned from a vacation in the Caribbean with his wife and young child, and is tempted by low ticket prices and exotic destinations that some other airlines avoid.

Odd destinations, small margins

For example, when civil unrest broke out in Haiti in 2018, Spirit — which offers direct flights from Port-au-Prince to Fort Lauderdale and New York — was a lifeline for some.

“They kept flying, which was good for us because we were able to maintain some of the programming,” said Lisa Stutzman, who organizes travel for Ohio-based Christian Aid Ministries. “It was a plus for Haiti,” she said, noting that American and Delta had canceled service to Port-au-Brice at the time, leaving Spirit as the only option.

But not everyone in Port-au-Prince is a fan of soul.

Wadstrant Jean-Baptiste, The president of the Evangelical Theological Seminary, which has nearly 300 students and is located in Port-au-Prince, said Spirit is a good option for some Haitians, but that the price is often not worth it for those who are struggling economically, and that may be part of the reason why… Soul to problems.

“Spirit seems to be a good option because our economy is dying, and they offer tickets at low prices, so people tend to go to Spirit, but in the end, they end up wasting time and money,” says Jean-Baptiste.

Haitians who travel to the United States like to buy goods that are cheaper than in Port-au-Prince, he said. They love taking these items home but then object because of Spirit’s rules regarding bag dimensions and weight.

“They measure every bag, and it’s exhausting,” Jean-Baptiste said. Going over the bag weight, which often happens after shopping in the US, can be expensive. “In the end, you’ll pay more for the item than if you bought it in Haiti,” he said, adding that he has flown Spirit several times but prefers American Airlines. But for Haitians who just want to leave, Spirit is a good option, he added.

Spirit’s interest in non-traditional destinations like Port-au-Prince sets it apart from other airlines, says Paul Faller, a professor at the University of Minnesota Law School and the Carlson School of Management. However, he says their profit margins are so small that it makes it difficult for Spirit to compete.

Vallier believes the judge’s ruling against the JetBlue-Spirit merger was improper and could be overturned on appeal. On Friday, the airlines formally appealed the decision.

“It was a very wooden ruling under the Clayton Act,” Faller said, referring to the competition law on which the judge based his ruling. Rather than stifling competition, JetBlue’s more powerful vehicle could make prices more competitive, he said.

“I think what the judge missed is that there is a beneficial countervailing effect to the merger where a big JetBlue could put more pressure on the legacy airlines,” Fallier said. This is especially true in mixed markets like Los Angeles that attract leisure and business travelers.

Part of the challenges Spirit faces is that its prices are so low that it competes not only with airlines, but also with buses and trains.

“They bring in a whole new group of travelers,” Vallier said, adding that the presence of ultra-low-cost carriers keeps everyone’s prices low. “There is a role for these players, and it’s really important to provide these options; they go places the legacy airlines don’t go,” he added.

Meanwhile, back in Latrobe, airport manager Monzo is just hoping to see Spirit stay in the sky.

“The spirit has kept us alive, that’s for sure, but no matter what happens, we’ll keep trying,” Monzo said.

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