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2025-10-10 20:45:45
[Why the "high-end dream" of low-cost airlines was shattered] ⑴ Spirit Airlines lost $246 million in the second quarter, and Frontier Airlines lost $70 million in the same period, indicating that the transformation strategy of low-cost airlines has been frustrated. ⑵ The operating expenses of the two low-cost airlines soared to 118% and 108%, respectively, up 34 and 24 percentage points from 2019, and cost control was completely lost. ⑶ The three major airlines in the United States compete for price-sensitive customers through basic economy class products. United Airlines's basic economy class products have accounted for 15% of domestic sales, forming a direct squeeze. ⑷ The addition of value-added services such as priority boarding and free checked baggage by low-cost airlines has increased operational complexity and weakened its core cost advantage. ⑸ JD Power survey shows that Spirit Airlines and Frontier Airlines continue to rank last in customer satisfaction, and brand awareness has become the main obstacle to attracting high-end customers. ⑹ Industry experts point out that there is no precedent for an airline to successfully achieve sustained profitability after the transformation from low-cost to high-end services.
