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

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 CCO 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 does not charge customers a flight-change fee.<br/>