Spirit Airlines outlines ambitious 20%+ growth targets for both capacity and margin for CY2015

Management at ULCC Spirit Airlines continues to push forward with ambitious plans to grow capacity by approximately 30% in CY2015 even as overall industry supply in the US domestic market appears to be creeping up.

Underlying Spirit's bullishness is a 4% decline in unit costs excluding fuel for 1Q2015, and the airline believes a decrease in that range is possible for CY2015. The company concludes even if the capacity increases puts some pressure on unit revenues, its cost performance will help lift margins, which is a major focus for the airline.

Alongside its aggressive capacity growth, presently Spirit estimates recording an operating margin of roughly 20% in CY2015, which ultimately could prove to be a conservative target.