Spirit Airlines fleet changes reflect a potential shift to smaller markets, still growing at 15-20%

The US ULCC Spirit Airlines is making adjustments to its fleet, moving to seize on opportunities created by owning aircraft versus renting, and retaining some smaller gauge Airbus A319s by purchasing those aircraft as their leases are up for renewal. The airline is also in discussions with Airbus about possibly switching some later delivery A321s to smaller gauge A320s. To a degree this is in reversal of a trend sweeping much of the US market, where most airlines are seeking to add seats to existing aircraft and are placing orders for larger gauge jets.

Spirit's fleet changes and evaluations appear to be meeting two objectives. Firstly, enlarging its base of owned aircraft should allow the airline to maintain its superior cost advantage, and secondly, creating some flexibility with aircraft size allows Spirit to add smaller, less competitive markets to its network.

In early 2016 Spirit's new CEO alluded to some small market opportunities, and indications are that the company is working to adjust its fleet in order to diversify its network composition.