Spirit Airlines waives change fee, joins Frontier | Wilnesh News

spirit airlines Frontier announced it is eliminating change and cancellation fees, effective immediately, in a matter of days, as part of a long-term strategic overhaul at the nation’s largest discount airline.

Before the new rules, Spirit used to charge between $69 and $119 for ticket changes and cancellations, depending on how far away the customer was from departure when making the change.

“This new policy is one of the best in the industry as it applies to every guest,” Spirit said in a statement to CNBC. “We are developing many other enhancements and look forward to sharing more soon. “

The changes mark a shift away from budget airlines’ longstanding approach to pricing, which has included low base fares to lure customers and surcharges for premium seat assignments, bottled water and carry-on luggage. Ancillary revenue often exceeds ticket prices on these airlines.

“As we continue to see demand and the competitive environment evolve, we know we must evolve with the times as well,” Spirit Chief Commercial Officer Matt Klein said on an earnings call earlier this month. “We will continue to test new sales strategy, which we expect will change our view on the total revenue component.”

Spirit and Frontier are both struggling to return to profitability in the wake of the Covid-19 pandemic, while major airlines offering base fares to domestic destinations and large international networks have already achieved profitability.

Most of the larger competitors, e.g. delta, American, Alaska and Unity Change fees have been eliminated during the pandemic on all but the cheapest and most restricted tickets. Southwest Airlines Passengers are not charged flight change fees.

In addition to cancellation change fees, border The company also announced on Friday that it will begin offering bundles with add-on options like the a la carte services they previously offered, such as early check-in and checked baggage.

Spirit also offers packages at various prices that include perks such as checked luggage.

President Joe Biden and the Department of Transportation have been cracking down on what they consider “junk fees.” As part of that effort, the Transportation Department issued a new rule requiring airlines to prepay additional fees for items such as checked or carry-on bags, a rule that many airlines later challenged.

Spirit said the end of cancellation fees has nothing to do with the new rules.

The Biden administration also recently issued a new rule requiring airlines to offer automatic cash refunds for canceled flights rather than issuing refunds at the customer’s request.