Spirit Airlines (SAVE, Financial), known for its budget-friendly services, has announced a rebranding initiative to transition into a high-end airline. This comes after the Florida-based carrier emerged from four months of bankruptcy protection. Spirit, recognized for its bright yellow planes, filed for Chapter 11 bankruptcy protection in November last year, marking it as the first major U.S. airline to do so since 2011. The company's 2023 financial report revealed a net loss of $1.2 billion.
As part of its strategic restructuring, Spirit Airlines plans to shift its target market from price-sensitive customers to high-net-worth individuals. This transition is projected to increase per-passenger revenue by 13%. To facilitate this market breakthrough, Spirit aims to revamp its frequent flyer program and expand its collaborative network through airline alliances.
CEO Ted Christie emphasized the company's new direction at a strategy release event, stating that Spirit is redefining budget airline services with a high-value travel solution. The board has confirmed that Christie will continue to lead the company's transformation efforts.
