• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Spirit Airlines gets rid of change and cancellation fees, joining Frontier
Editor's Pick

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

by May 22, 2024
by May 22, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

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
You Might Also Like
  • Don’t freak out about the stock market’s inflation freakout
  • Netflix inks deal to stream its first NFL games on Christmas Day
  • Sam Altman tells OpenAI staff there’s no plan for him to receive ‘giant equity stake’ in company
  • Universal’s ‘Wicked: For Good’ creates a unique marketing challenge
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Trump Media lost $327.6 million in the first quarter of the year on revenue of just $770,500
next post
Pixar is laying off 14% of its workforce as Disney scales back content

You may also like

EPA bans asbestos, a deadly carcinogen still in use decades...

March 19, 2024

Warner Bros. drops price of Max subscription with ads as...

November 21, 2023

Why Detroit’s Big Three are fighting to dominate the next...

September 15, 2023

Walmart will likely raise some prices if Trump tariffs take...

November 19, 2024

Tesla sees record global deliveries after lowering prices and tapping...

July 6, 2023

Walmart employees are now wearing body cameras in some U.S....

December 18, 2024

Skydance bid for Paramount hinges on Shari Redstone as special...

May 4, 2024

Mortgage refinance demand jumps to a 2-year high, as interest...

July 17, 2024

New York Community Bank to buy failed Signature Bank

March 23, 2023

Quectel Announces CC200A-LB Satellite Module for IoT Industries

March 15, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,632 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,303 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, 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 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Summer travel season off to rough...

    June 29, 2023

    JPMorgan Chase is opening more small-town...

    August 6, 2024

    ONE announces project with Sony Network...

    February 20, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here