Originally Posted by Bluedriver

I found this quoted on another message board, not sure the source:

"The culprit according to Spirit is “softer demand for our product and discounted fares in our markets.” I will actually touch on that more tomorrow when I look at Frontier, but suffice it to say for now that there is a ton of capacity in Las Vegas and Florida where the ultra low cost carriers are concentrated, and demand is just not there to support it all.

In Q3, Spirit’s unit revenue plunged 17.4 percent to 9.14 cents vs last year. Overall total revenue per passenger dropped 13.5 percent, but it was only that good because ancillary revenue stayed fairly flat. Actual fare revenue dropped a shocking 27.8 percent year-over-year. As you’ll see tomorrow, this impacts Frontier as well, but the difference is that Frontier says it sees things stabilizing. Spirit says otherwise. We continue to see discounted fares for travel booked through the pre-Thanksgiving period. And, unfortunately, we have not seen the anticipated return to a normal demand and pricing environment for the peak holiday periods."

Having more jets and seats in the air will definitely not help the current ULCC situation.