This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Spirit Airlines' Bookings Rise 50%

Stocks in this article: DAL UAUA AMR LCC JBLU

Spirit's top two markets are Fort Lauderdale, Fla., and Detroit. It is No. 1 in the former, holding 20% of the market, and No. 2 in the latter, holding about 5% of the market, which is dominated by Delta (DAL). Atlantic City is a key market, as is Myrtle Beach, where Spirit is the only carrier to fly big jets as opposed to regional jets.

In terms of the operational realities of the airline industry, the charge makes perfect sense because it addresses a major problem: delays incurred when passengers search for space in overhead bins, typically to stash their roller boards. By cutting five minutes from the time each aircraft spends at the gate, Spirit could gain 15 hours of flight time each day, Baldanza said. The carrier's 29 aircraft make about a half dozen "turns" each day.

However, the airline industry is also sensitive to public and Congressional opinion. On Sunday, Sen. Charles Schumer (D-N.Y.) said five airlines told him that they will not institute fees for carry-on bags. These include Delta, American (AMR), United (UAUA), US Airways (LCC) and JetBlue (JBLU).

Spirit doesn't care what other carriers do. "We're indifferent about whether they follow," Baldanza said. However, it is worth noting that Spirit was the first U.S. carrier to charge for the first checked bag, starting in June 2007. It was not until February 2008 that United became the first major carrier to follow.

In the end, Baldanza is clearly pleased by the furor over Spirit's fees. He is, after all, a marketing guy who was previously senior vice president of marketing at US Airways, and free publicity is something he values. Asked whether he believes all publicity is good publicity, Baldanza said no, but: "Our sales are up and the media exposure is big and becoming more balanced, and that combination is a good one for Spirit."

-- Written by Ted Reed in Charlotte, N.C. .

2 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs