Spirit Airlines: the Ultra Low-Cost Airline That Was Not Low Cost

Authors

  • Arthur Kraft George and Barbara Bush Chair in International Business Professor of Business George L. Argyros College of Business and Economics 403J Beckman Hall Chapman University, USA. Author
  • John Kraft John B. Hall Professor Business Center Eugene F. Brigham Finance, Insurance, & Real Estate Department Warrington College of Business Bryan, University of Florida USA Author

Keywords:

low cost, airline, strategic group, Ryanair, function level strategies

Abstract

Spirit Airlines (SA) started in the mid 1990’s as an ultra-low-cost airline and became a fixture in a group of 
discount carriers which included Southwest Airlines (the original discount leader), Jet Blue, and Frontier 
Airlines. Spirit Airlines focused on reducing costs to reduce prices. The strategy resulted in attracting loyal 
customers and the airline followed the lead of European discounters: Ryanair and EasyJet. Michael O’Leary had 
taken over a struggling Ryanair and implemented a low-cost business model for Ryanair. Currently Ryanair under 
O’Leary’s ruthless implementation of low-cost was the global discount airline leader. Spirt Airlines after a fast 
start failed to consistently implement the ultra-low-cost model and on May 2, 2026, the U.S.’s seventh largest 
airline (Spirit Airlines) folded. The pandemic, prohibitive costs, two failed mergers, poor strategic choices, a 
staggering debt load, and the spikes in jet fuel signaled the end for Spirit Airlines.

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Published

2026-09-10

Issue

Vol. 16 No. 3 (2026): July-September

Section

Articles

How to Cite

Arthur Kraft, & John Kraft. (2026). Spirit Airlines: the Ultra Low-Cost Airline That Was Not Low Cost . INTERNATIONAL JOURNAL OF MANAGEMENT RESEARCH AND REVIEW, 16(3), 200-203. https://ijmrr.com/index.php/ijmrr/article/view/758