One of America’s most disliked airlines just wants to be loved

Spirit Airlines Inc. is tossing out its bare-bones business model and trying to go upscale with fares that include extra leg room and free checked bags. Now comes the hard part: convincing Americans to pay for it.

The carrier hired what it described as a “world recognized” advertising agency as well as a brand adviser to help it shed its reputation as one of America’s most disliked airlines. It’s a label that’s lingered for years, following a rash of complaints filed with US regulators. It’s gotten so bad that Spirit is now common fodder for late-night television.

On a recent episode of The Tonight Show, host Jimmy Fallon acknowledged military members in the audience and then quipped: “When it comes to being on planes, the only braver people I know are the ones that keep flying Spirit Airlines.”

Spirit’s ultra-discount strategy revolves around offering cheap fares while charging for items such as coffee, bottled water, carry-on bags and printed boarding passes. William Franke, the self-proclaimed father of ultra-discounting, transformed Spirit to that model after his Indigo Partners LLC gained control of the closely held carrier in 2006.

That approach worked and Spirit, along with Frontier Group Holdings Inc., broke through and gained market share. But larger carriers, such as American Airlines Group Inc. and Delta Air Lines Inc., have responded in recent years with basic fares at similar prices. 

That competition has been punishing for Spirit. The company has posted annual operating losses since 2020. Its stock is down 83% this year.

The carrier’s never spent “time or money” telling its story and let its low fares drive the discussion, Spirit Chief Executive Officer Ted Christie said Thursday on an earnings call after it reported more losses. Christie said the goal is to change from being known just as low cost and low fares to “delivering value with low costs.”

It’ll be a tall task. A 2024 J.D. Power study of customer satisfaction with economy airlines ranked Spirit next to last, only above Frontier, among 11 North American carriers.

Getting consumers to reconsider any brand is hard, but it’s especially difficult when the company is struggling financially, according to Eric Schiffer, chairman of Reputation Management Consultants Inc.

“When a brand has the deep history of a Spirit Airlines, it’s not dead in terms of being able to change the public’s perception,” Schiffer said in an interview. “But it requires immense money, giant and brilliant creative ideas and leadership that’s going to be consistent with that.”