Spirit Airlines Loses Ground As Competitors Expand In The Popular Tourist Market

Summary

• Spirit Airlines is focusing on core markets amidst aircraft shortages to drive profitability.
• Routes in Florida have been tweaked to avoid competition, allowing for network restructuring.
• Competitors like American, Southwest, and Delta are increasing their presence in Florida markets.

Low-cost carrier Spirit Airlines has released its results for the first quarter of the year as it looks to return to profitability. Hampered in part by aircraft groundings, the carrier has realigned its network in recent months as it forges on with the first phase of its new standalone business plan following the end of merger talks with JetBlue.

Focusing on what works

The carrier is concentrating on its core markets this year as it sees increased competition from legacy and other low-cost carriers on an increasing number of busy routes. One of the key factors influencing this decision is the lack of available aircraft this year. According to the carrier’s latest financial report, it took delivery of seven new aircraft (three A320neos and four A321neos), retired five A319ceo aircraft, and ended the quarter with a fleet of 207 aircraft.

However, Spirit further confirmed that it expects to average over a tenth of its planes (25) on the ground this year. This is partly due to supply chain issues, which have been sorted separately with Pratt & Whitney and will result in pilots being furloughed later this year until the appropriate aircraft can be brought online. According to Ted Christie, Spirit’s President and Chief Executive Officer, the path to profitability lies in being strategic:

“The competitive environment remains challenging due to elevated capacity in many of the markets we serve.

“Nevertheless, we are confident that the strategic changes we are implementing, together with our cost saving initiatives, will allow Spirit to compete effectively in today’s marketplace and drive continuous improvement in the years ahead.”

One of the main ways this has been visible is through the airline restructuring its route network to focus on profitable connections as increased competition saw Spirit’s fare revenue per segment decrease more than 16% year over year.

Increasing Competitiveness in Florida

One of the factors that affect low-cost carriers, in particular, is the amount of competition on a given route. Spirit is among several airlines that have retreated from major airports with significant competition in favor of smaller point-to-point markets. Compared to June 2023, the carrier has removed a dozen Florida routes from major airports.

The majority of these routes involved Orlando International Airport (MCO), which saw cuts to destinations including Phoenix, Los Angeles, Denver, Raleigh-Durham, Detroit, and Manchester-Boston. Many of these routes were up against direct competition from established carriers, freeing up Spirit to redirect capacity elsewhere. The airline also decided not to continue its international route from the airport to the Dominican Republic and reduced services to domestic destinations such as Puerto Rico, Dallas/Fort Worth, Houston, Charlotte, Las Vegas, and Atlanta.

Another airport that saw route cuts was Miami International Airport (MIA). Spirit removed its daily flights from the South Florida city this summer to Detroit, Boston, and Cleveland. Frequencies were further reduced to Atlanta, which was previously double-daily, and ​​​​​​​Spirit significantly reduced services from MIA on the American Airlines-heavy route to Dallas/Fort Worth.

However, the Miami changes were largely offset by Spirit’s increases at its nearby hub in Fort Lauderdale.

Building out the market.

Spirit Airlines’s Florida network remained stable across its domestic destinations. According to scheduling data, the carrier had 5,303 daily flights departing from Florida in June, up from 5,306 in 2023. A significant expansion can be seen at Fort Lauderdale-Hollywood International Airport (FLL), which shares part of its catchment area with MIA an hour south.

The carrier added daily flights from FLL to Phoenix, Indianapolis, and Houston (IAH) this summer and doubled frequencies to Chicago (ORD), Atlantic City, Myrtle Beach, Charlotte, Richmond, and Nashville. There are also increases from Orlando to New Orleans, Pittsburgh, and Kansas City, along with new routes, including Charlotte-Tampa and Pensacola-Dallas Fort/Worth.

How has the competition reacted?

Former potential partner JetBlue has also withdrawn significantly from the Florida market this summer, dropping 8.6% of its flights to the state compared to last year. Avelo Airlines is the only other carrier to reduce flights to the state this summer, primarily on routes from North Carolina and Connecticut.

The carrier with the biggest growth is American Airlines. The largest additions naturally came to its Southeastern Hub at Miami International Airport, which gained 673 flights compared to last June (representing over 109,000 seats in each direction.

In addition to Miami, the oneworld carrier also increased its presence at Panama City Airport (ECP) by almost 80%. Pensacola (PNS) now has an average of ten daily flights, up a quarter from 2023. American elsewhere added flights to West Palm Beach, Gainsville, and Key West.

Adding some summer sun

Southwest Airlines is flying over 10,000 flights to Florida in June, equalling just over 45 daily flights in each direction. The biggest airport to see a bump is Orlando, which receives boosted frequencies in Austin, Denver, Houston (HOU), and more. The carrier has increased its Florida network by over 82,000 one-way seats.

Delta Air Lines increases its seat capacity from Florida by just over 5% for June. Panama City (ECB) and Destin-Fort Walton Beach (VPS) saw the most significant bumps from Atlanta, with an average of three daily flights each. Atlanta to Orlando is also getting three more daily flights compared to 2023, for a total of 11 daily.

The carrier is also expanding into Florida from LaGuardia (LGA), which is getting triple daily links to West Palm Beach, Jacksonville, Fort Meyers, and Tampa.

Lifting the leisure market

Allegiant Air has grown its presence in the state by 11% with more than ten additional daily flights to Flordia. However, it modified its offerings in Fort Lauderdale as Spirit retrenched itself at the South Florida airport. The carrier is running three new routes to Orlando International (Knoxville, Allentown, and Ashville/Henderson) and notably expanded its presence at nearby Orlando-Sanford (SFB) with 112 additional flights next month, representing over 20,800 seats.

Relatively new airline Breeze Airways is the final carrier expanding significantly in Florida. Compared to 2023, the airline is serving over 40 new city pairs. The carrier’s low-cost model allows it to experiment with new and unserved routes. Having recently celebrated its third anniversary, the airline now has a network of over 50 destinations and is launching a rewards program.

Breeze Airways’s’ 50th destination, Coastal Carolina Airport (EWN), is set to come online later this month. The first flights are set to be Connecticut and, you guessed it, Orlando, Florida.

Other US carriers have responded more conservatively, with Alaska Airlines adding capacity on three routes from Florida to San Diago for June. United Airlines continues to serve the state from all its major hubs, adding flights from Newark and increasing its presence in Panama City.