At first it sounds good but two things to add:

1. When oil spikes it is about cash reserves. Do we have any? I don't know. Can we get injections from the owners? They did nothing for us in 2008.

2. When oil spikes most companies can raise ticket price, and cut capacity and start bleeding slowly. We can't do neither. Their higher income pax can make up some of the lost income from the bottom market. We can't do that because all we are serving is the bottom market. It is a segment most companies don't even serve. That is the big deal about Spirit. In other words, if we raise prices, we price ourself from the ULCC into the ULC market. There you can find JB, SW, etc. And we can't compete with them because those pax want more than just the lowest ticket. They want some quality.

Have you ever though about why there is not much of a selection of steaks in Walmart as opposed to poultry? It is because even the cheap steak is still kind of expensive. The lowest income people can't and don't eat steak a lot. If oil is the controlling expense of a ticket price, and it becomes very expensive, products that depend on it will become unavailable to the poorest. Like flying. If we can't continue to offer low prices because oil spikes we are gone.

Oil is bad new for Spirit. I hope this time around they will have some cash saved up and won't dive for the red button.