Connect with us

Hi, what are you looking for?


Spirit Airlines gets rid of change and cancellation fees, joining Frontier

Spirit Airlines is doing away with both change and cancellation fees, effective immediately, days after Frontier’s similar announcement, part of an overhaul of the country’s biggest discount carriers’ longtime strategy.

Prior to the new rule, Spirit used to charge anywhere between $69 and $119 for ticket changes and cancellations, depending on how close to departure the customer made the change.

“This new policy is among the best in the industry because it applies to each and every guest,” Spirit said in a statement to CNBC. “We have many other enhancements in the works and look forward to sharing more soon.”

The changes mark a shift for budget airlines’ longtime pricing approach, which includes low base fares to attract customers and add-on fees for advanced seating assignments, bottled water and cabin baggage. Ancillary revenue routinely surpasses those airlines’ ticket prices.

“As we continue to see the demand and competitive environments develop, we know that we must also change with the times,” Spirit’s Chief Commercial Officer Matt Klein said on an earnings call earlier this month. “We will continue to test out new merchandising strategies, which we anticipate will change how we think about the components of total revenue generation.”

Both Spirit and Frontier are trying to return to profitability in the wake of the Covid-19 pandemic, while larger airlines that offer both bare-bones fares to domestic destinations and big international networks have posted profits.

Most larger rivals such as Delta, American, Alaska and United got rid of change fees during the pandemic except for the cheapest, most restrictive tickets. Southwest Airlines does not charge customers a flight-change fee.

Along with getting rid of change fees, Frontier also announced Friday that it will start offering bundles that include add-on options such as early boarding and checked baggage that they previously offered a la carte. 

Spirit is also offering bundled packages with varying prices that include perks such as checked bags.

President Joe Biden and the Department of Transportation have been cracking down on what they deem “junk fees.” As part of that push, the DOT issued a new rule requiring airlines to be upfront about add-on fees such as those for checked or carry-on baggage, which was subsequently challenged by a slew of airlines.

Spirit said the end of cancellation fees were not tied to the new rules.

The Biden administration also recently issued a new rule requiring airlines to offer automatic cash refunds for cancellations rather than in response to a customer’s request.

This post appeared first on NBC NEWS

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Editor's Pick

    There is no trial in recent history, or possibly all of American history, that can rival the one underway in Lower Manhattan. For the...


    Meta Platforms Inc. (META), the social media giant formerly known as Facebook, has been in tight consolidation at the top of its range for...


    Output from the top uranium-producing countries rose steadily for a decade, peaking at 63,207 metric tons (MT) in 2016. However, global uranium production has...


    Leading chip designer Advanced Micro Devices, Inc. (AMD) is at a critical juncture, one which could go either way depending on the dynamics of...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024