Spirit Airlines pushes up ancillaries, offsetting other challenges

Spirit Airlines is a global leader in producing non-ticket revenue, with ancillary revenues representing approximately 50% of its total revenue. The company has several initiatives under way to drive its non-ticket revenue up even further, and predicts 3% growth year-on-year in 2020 in its non-ticket revenue per passenger segment.

The growth prospects are impressive, but for now Spirit's revenues from fares on a flight segment basis continue to trend downward.

That may not be an issue as long as the airline continues to push non-ticket revenue up to grow its top-line revenues. However, the airline is also facing some cost creep and is currently projecting a rise in unit costs excluding fuel of 1% to 2% in 2020.