Everyone out there on the line is running around saying Spirit is making tons of dough but I'm not sure that is the case? Does anyone have any verifiable PROOF that NK is making money?
Our ULCC model works if REVENUE doesn't fall. Costs are down because fuel has decreased so much since last year. However, for us to remain profitable, you have to put butts in the seats and you can't allow REVENUE to drop.
Personally, I'm concerned about our exposure to DTW and ACY (check out what's happening to the local economies there). We have pulled out of multiple markets now that were touted at the time as being "money makers" (CAE, POS, and possibly SAT). We also have NO domestic feed and we lack frequency of service to these new destinations.
We are too small to absorb losses that the big boys can easily withstand. That is why they have instituted all these "fees." To keep REVENUE levels up. Riddle me this...If the airline is making tons of money, then why would they impose a fee just for the privilege of buying a ticket on us? Seems like a step taken to keep revenue from falling.
Please don't think I'm trying to scare folks. I just wish we were managed by folks who KNOW the airline business (Kelleher, Bethune types, etc), and not the marketing types that are in there now launching "iffy" routes like ORD-MYR and BOS-ACY...