Spirit Airlines announced plans to accelerate its expansion, boosting capacity by 23% this year in a move that Dow Jones says highlights the opportunities for US low-cost carriers as larger network rivals shrink domestic flights.
"The Florida-based carrier’s expansion in cities such as Dallas, Chicago and Denver, and into the Caribbean and Central America, provides a particular challenge to AMR Corp. as 60% of its network overlaps with the third-largest US carrier by traffic," says Dow Jones.
Smaller airlines are looking to fill the gap as the three largest carriers — United Continental, Delta and AMR — all pledging to keep capacity flat or lower this year.
Spirit grew capacity by around 15% last year. It’s announced 23% expansion for 2012 lags only the 30% growth targeted by Virgin America.
Ben Baldanza, Spirit’s chief executive and a former American Airlines’ executive, said on a post-earnings’ call that he sees opportunities to expand profitably beyond those captured by its existing fleet plan.
Spirit plans to add seven planes this year, boosting its fleet to 44. It has around 100 Airbus aircraft on order for delivery between now and 2021.
By David Wilkening
