Spirit Airlines: maturing markets could create upside in 2020

Spirit Airlines has been one of the fastest growing US airlines during the past decade, and over the past three years its ASM growth has averaged nearly 20%. The company expects capacity growth of 17% to 19% in 2020 as it expands both domestically and internationally.

Spirit has also worked to ensure that its expansion includes international destinations to diversify its network, and expects international markets to make up approximately 15% of its total capacity.

Cancún has been a centrepiece of Spirit's latest international push after the airline concluded that it is a ripe market for the company's specific product offering. The airline also believes that some of the new markets it has added during the past year should reach a certain level of maturity, which should create some unit revenue benefit for Spirit in 2020.