Spirit Airlines Exits Bankruptcy, Targets Southwest Customers

Spirit Airlines has successfully emerged from bankruptcy, meeting its first-quarter target. CEO Ted Christie says the airline is leaner and prepared to compete, especially as Southwest Airlines makes major changes.

Southwest recently announced it will start charging for checked bags, ending a decades-long policy of allowing two free bags per passenger. The shift, effective in late May, marks a significant departure from its customer-friendly approach.

Christie sees an opportunity in this change. “It’s going to be painful for them at first, and we’re ready to take advantage of that,” he said. Spirit has long operated with an ultra-low-cost model, charging for seat assignments, bags, and extras—a pricing strategy now common across major airlines, except Southwest.

With Southwest also launching a basic economy fare that removes free changes and seat selection, Spirit could attract price-conscious travelers. The airline competes with Southwest in markets like Kansas City, Nashville, Columbus, and Milwaukee. As Southwest debuts on Expedia, Spirit’s lower fares may appear higher in search results, increasing visibility.

Delta Air Lines President Glen Hauenstein noted that Southwest’s bag fee change puts its loyal customers “up for grabs.” Spirit, meanwhile, is offering new ticket bundles that include seat selection and baggage.

Following a $1.2 billion net loss in 2023, Spirit is focusing on profitability after restructuring, which reduced its debt by $795 million and secured $350 million in new equity. While Spirit has rejected merger attempts from Frontier Airlines, Christie says all options remain open.

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