Spirit Airlines

Spirit Airlines began in 1992 as a charter carrier operating from Detroit, Michigan, under the name Charter One, before rebranding as Spirit Airlines in 1993. Initially offering scheduled service to Atlantic City and Florida, the airline transitioned to an ultra-low-cost model in 2007, inspired by European budget carriers like Ryanair. This shift involved stripping amenities and introducing à la carte pricing, a strategy that proved profitable but controversial. By 2011, Spirit had moved its headquarters to Miramar, Florida, and expanded its network to Latin America and the Caribbean, becoming one of the fastest-growing U.S. airlines.

Spirit’s business model centered on keeping base fares low while generating ancillary revenue through fees for baggage, seat assignments, and even printing boarding passes at the airport. The airline famously charged for carry-on bags, a practice that drew criticism from consumer advocates but was defended as offering customers choice. Spirit also faced regulatory scrutiny for its advertising practices, including a 2015 U.S. Department of Transportation fine for misleading fare displays. Despite this, the model proved financially resilient, and Spirit consistently reported among the lowest unit costs in the industry.

In 2022, JetBlue announced a $3.8 billion acquisition of Spirit, a deal that faced antitrust challenges from the U.S. Department of Justice. A federal judge initially blocked the merger in 2024, citing concerns about reduced competition, but the decision was overturned on appeal in 2025. The merger was completed in early 2026, and Spirit’s operations were gradually integrated into JetBlue’s network. The combined airline retained JetBlue’s brand and expanded its presence in Florida and the Caribbean, while Spirit’s distinctive yellow aircraft were repainted over time.

Spirit Airlines had a quirky side that often went unnoticed. Its aircraft featured a “Spirit” logo with a stylized wing, and the airline was known for its “Big Front Seat” – a premium seat offering extra legroom at a lower price than competitors’ first class. Spirit also operated a loyalty program called Free Spirit, which allowed members to redeem miles for flights and even for fee waivers. Notably, Spirit was one of the first U.S. airlines to introduce a fully unbundled fare structure, and its CEO, Ted Christie, was known for his outspoken defense of the model. The airline also had a brief foray into the charter market for sports teams and vacation packages.

Ultra-low-cost carrier (ULCC)

A business model where airlines offer low base fares and charge separately for most services.

Ancillary revenue

Income from non-ticket sources such as baggage fees, seat selection, and onboard sales.

Big Front Seat

Spirit’s premium seating option with extra legroom, similar to first class but at a lower price.