Skift Take
It was not clear three years ago whether Spirit could make it long term. It ran a shoddy operation, and it had alienated many of its customers. But Spirit is back, and it's making good returns for shareholders.
When the largest U.S. airlines devised no-frills basic economy fares several years ago, they said it was to stop losing customers to ultra-low-cost carriers, which sell cheap base fares but charge extra for nearly everything else.
On recent earnings calls, major U.S airline executives have said the strategy is working, not only against ultra-low-cost carriers, but also as a hedge against higher fuel prices. By using basic economy fares, American Airlines, Delta Air Lines and United Airlines have been able increase prices even on routes where discounters don't compete, forcing customers to pay an extra $25 or $30 for what used to be the standard economy class experience.
But what has been beneficial for the majors hasn't been much of an issue for Spirit Airlines, one of two U.S. ultra-low-cost-carriers that competes directly with legacy airlines. Despi
