In a move that aligns with industry trends, Spirit Airlines has scrapped its change and cancellation fees, aiming to provide customers with more flexibility. The budget-friendly carrier's update, spotted on its website this weekend, allows travelers to modify their flights without the extra costs that previously ranged from $60 to $119. "Spirit has been evaluating changes to our product and strategy that will help us better compete, elevate the guest experience and return to profitability," stated a Spirit spokesperson.
This elimination of fees marks a significant shift for Spirit, which, like it's competitor Frontier Airlines, has been grappling with a challenging financial landscape. Frontier introduced a new pricing structure last week, doing away with change fees for upper fare classes and offering bundled extras. Meanwhile, Spirit is attempting to navigate its post-pandemic recovery, continuing to operate without a full-year profit since 2019. The company felt a fresh blow after a federal judge blocked its $3.8 billion merger with JetBlue, a deal once seen as crucial for survival, as reported by Local10.
The transition by Spirit comes amid broader shifts in the airline industry's approach to change fees. The major U.S. carriers – American Airlines, Delta Air Lines, and United Airlines – had already dropped such fees for all but their most restrictive fares during the pandemic, a practice Southwest Airlines has long embraced. As the industry adjusts to post-pandemic consumer expectations, airlines seem keen on distinguishing themselves through more lenient policies.
Spirit's decision seems untethered to the Department of Transportation's new requirements for airlines to disclose all fees for ancillary services, despite several major carriers pushing back against the regulation. Within the backdrop of these changes, Spirit is shoring up its position. It's CEO, Ted Christie, has criticized pervasive industry narratives, dismissing talks of bankruptcy for Spirit as "misguided narrative," and denouncing the industry as a "rigged game," as per a statement obtained by Quartz. As part of its cost-cutting efforts, the airline deferred Airbus deliveries planned for 2025-2026, with an agreement to postpone them further to 2030 and 2031, causing a temporary furlough of 260 pilots starting September 1.
