Spirit Airlines faces 2017 capacity flux as unit revenue remains under pressure

Various issues are coalescing to drive Spirit Airlines’ capacity growth lower in 2017, including idle aircraft and operational challenges stemming from a pilot slowdown and hurricanes that struck a significant portion of its network in late 3Q2017.

Those issues are resulting in Spirit making adjustments to its growth targets in 2017 and 2018. For now, its capacity expansion will slow significantly in 2019, to approximately 10%, which would be the lowest level for Spirit over a five year period. Its 2019 projections are based on its current order book, and any future orders seem tied to the outcome of contract negotiations with its pilots, which have lasted approximately two years.

Spirit is experiencing some relief from pricing pressure it was under during the US summer season, and believes adjustments it has made in revenue management are bearing fruit. However, its unit revenues will remain depressed in 4Q2017.

This CAPA Premium Analysis article is 1,239 words.

To access CAPA Premium Analysis you need a CAPA Membership

Your window into the latest insights

CAPA employs an industry-leading Analyst team based in Europe, North America, Asia and Australia who offer unique perspectives and independent and accurate commentary of critical industry developments globally. CAPA Members rely on our Analysis to unlock valuable insights and actionable intelligence to keep ahead of the game.

Big picture strategic view

Our Analysts don’t just report the news - they take a big picture strategic view of aviation dynamics, issues and trends and analyse the implications of these developments for you.

Global intelligence

The CAPA Analyst team is based globally to ensure our CAPA Members have access to independent, unique perspectives covering an entire spectrum of daily, worldwide commercial aviation developments.

Customise your Alerts

CAPA Members can use CAPA Alerts to receive daily, weekly or monthly and customised updates on our Analysis.

I'm very impressed by the factual and detailed analysis CAPA is always doing.

- CEO, Airline Member
To learn more, contact us:
Phone: +61 2 9241 3200 | Email: membership@centreforaviation.com