Here’s Why Investors Trust Spirit Airlines Despite Its Bad Reputation

Business LoungeJune 27, 2019

They may not be the most famous and highly-recommended airlines, but you’ll definitely want to become one of their stockholders. That is because by the end of 2018, their stocks rose to 30 percent while its competitors continue to go downhill. This is known to be the third time that it hit such a high streak and now they are worth over $3.8 billion, and that is all thanks to the profits that it gain in the past few quarters despite how the fuel costs are doing.

New planes! New routes! 2018 was quite the year. But trust us, 2019 is going to be even better! #HappyNewYear ✈️🎉 pic.twitter.com/bo0wbDnMI1

— Spirit Airlines (@SpiritAirlines) December 31, 2018

Spirits Airlines Goes Up

The said airlines don’t really have a great customer service ratings because of how much complaints they have been getting, however, it would seem that they are working on it and they said that their customers will soon feel the change. According to their chief executive officer Ted Christie, they have indeed made a lot of progress when it comes to their operations, guest performance, and even on their revenue performance.

However, they would still need to take a look into things and make sure that the change continues to progress so it would require a lot of their attention. He even referred to their company’s as a sharper competitor. Christie has been the airlines’ CEO for more than six years now and he stated that the carrier will be able to please not just their investors but also their customers. The more the investors, the more trust people can give them so that means more customers. They would like people to know that they are offering high-quality services.

Experts have indeed seen how the said airline has been improving these past few months. In fact, last October they even made it into the Department of Transportation’s on-time arrival rankings for the very first time in the companies history.

Their flights who are usually delayed and late, had about 81 percent of positive feedbacks because of being on time in the past years. This is, of course, a massive change since they were on the last spot last year and now they’re at the 4th spot. However, they still get more complaints compared to the other airlines, but they had an increase in passengers by 13 percent, coming from the 24 million passengers a year prior to that. Experts believe that this change could definitely be helpful, being affordable doesn’t have to mean that they can’t be reliable.

People would rather pay more money and get good service, instead of paying less but experience inconvenience.
Some analysts say that the reputation of Spirit may be the reason why they still get more negative feedbacks than good ones compared to the other airlines. They even had the second-lowest rate of canceled flight in October according to the Federal Aviation Administration.

This should be impressive but customers may be a little too difficult to please especially if they have not so great experiences in the past. Encouraging them to try it out once more is not impossible though, with the stocks rising, they will slowly realize that Spirit Airlines may be working on their flaws. One of those has got to be the carry-on policy that the airline used to have, wherein they didn’t allow certain kind of bags that are medium sized.

Striving For the Better

According to the Department of Transportation, Spirit Airlines is the eighth biggest airline in the country. They are now increasing their capacity which will be more than three times than they currently have. In an interview, Christie once mentioned that they are currently focusing on giving better services and performance, but will surely consider merging with another carrier since he can’t really close their gates on the opportunity in the future.

Their stocks, on the other hand, continue to soar which is why the company has been trying to make things better even more. Their stocks actually doubled last November during the final quarter of the year according to the revenue forecast. The 11 percent growth definitely made a massive difference. The other airlines, however, are not doing great especially with the rise of a bear market and the S&P 500 not doing so great the past quarter. More and more airlines in the world are struggling, but those are the bottom don’t have anywhere else to go but up.