“We’re Going to Take Advantage of That” — Spirit Airlines CEO Targets Southwest After Controversial Announcement

Disney4me · March 17

Southwest Airlines has majorly shaken things up with the announcement that they would do away with their open seating policy by later this year, but they recently announced that on top of that, they would be doing away with their “two free checked bags” allowance for all customers.

©Southwest Airlines

In response to this most recent announcement, many customers have been publicly stating that they’ll be looking to fly with other airlines, and do you know who’s ready to capitalize on that? None other than Spirit Airlines, even though they’re just barely back from bankruptcy.

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According to CNBC, Spirit Airlines hit their first quarter target for 2025 after a crippling few years falling short that led them towards bankruptcy, but now they’re back on track and ready to take on Southwest Airlines. CEO Ted Christie was quoted saying that he thinks “it’s going to be painful for a little bit as they [Southwest] find their footing, and we’re going to take advantage of that.”

©Spirit Airlines

Spirit Airlines was the pioneer of a la carte pricing in the United States, where customers can pay to select a seat ahead of time if they don’t want to be randomly assigned one (which is free), each checked bag is an additional fee, and additional add-ons are also an extra cost, but they’re easy for many passengers to do without (things like wifi, on-flight snacks and drinks, etc.). Many other airlines (except Southwest) have copied this model in some way over the years, however, now that Southwest’s changes will start charging bags for all customers that aren’t A-List members or credit card holders, and is introducing their first basic economy class that doesn’t include a seat assignment or a checked bag, it’s possible that Spirit could win those customers over.

©Spirit Airlines

CEO Christie pointed out that there was a large group of people out there who chose to fly with Southwest solely because they knew they were getting two free checked bags, and now that that’s no longer the case, it’s safe to assume “that they’re going to widen their aperture and they’re now going to look around.” While Spirit is smaller than Southwest as a whole, they do compete in multiple markets such as Kansas City, Nashville, Columbus, and Milwaukee.

Spirit Airlines

However, Spirit isn’t the only airline planning on capitalizing on Southwest’s controversial decision — Delta Airlines has also recognized that a portion of Southwest’s customers are up for grabs, but it is important to consider the sizable price difference often found between Delta and Southwest’s average ticket prices. While Spirit is focused on restabilizing after its bankruptcy scare, it did successfully reduce its debt by about $795 million. It’s possible taking some of Southwest Airlines’ customer base could propel them higher in the aviation world.