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Spirit Airlines CEO Ben Baldanza weighs in on the state of business in the discount airline industry.
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-- -- gas prices rising -- driving vacation be more expensive than flying low cost no friends Spirit Airlines has base fares as low of nine box.
But then got out all the taxes and -- that still.
That -- still comes in at 29 bucks -- Howard gas prices and jet fuel prices impact in Spirit Airlines CEO band called on that.
Joins us now -- thank you so much for coming on we really appreciate it.
That's good to see -- -- Melissa yeah.
But let me ask you personal more serious question about that tornadoes down -- Dallas yesterday did you guys have any disruptions did you have any injuries or damage what's the situation now.
-- -- up personal injuries we we canceled four flights yesterday because of whether in Dallas for flights in -- out of Dallas.
And we had doubt some minor hail damage to one airplane that -- -- to cancel a couple of flights today as we do the appropriate inspection of that airplane.
Let me get it in the fourth quarter you may 24 million dollars.
How possibly make money charging nine bucks for a seat on a plane.
Well we make money because we have very very low cost and we get those low cost the high utilization.
Also you know our base fare is the base -- and we sell.
Other products and services as ancillary revenue some people think of that is -- and dining but when it's added to a real low prayer.
It's not quite as bad when you pay extra for your bags -- your seats.
And -- so the combination of the low costs and ancillary revenue helps us sell really low fares and still be -- And then we're showing our viewers on the screen their carry on -- cost thirty box.
First checked back 28 -- so in this -- -- in dining your customers you are indeed any further plans for these if you will ala carte services.
Well you know we look at everything we can do that debt to help customer save money.
If they're willing to change their travel a bit and we're proud of the fact that spirit that customers can decide -- -- a little less.
And actually save money airlines that don't make those charges.
Make you pay for those things even if you don't use them -- so especially an environment where fares are higher because oil prices are higher.
Having -- ala -- kind of product lets customers -- gives customers the power to save and we like.
That -- how are you dealing with these higher fuel costs -- able to hedge locking in prices a dollar has it impacted your margins at all.
Well you know we we we tend to do pretty well we put a lot of seats on our airplanes and other thing that helps keep our ticket prices low.
But the other thing that that does by having more seats on our our planes than most carriers with the same equipment be used.
Is that the price per ticket doesn't have to rise as much to cover the cost of fuel increases because we spread that cost over more people.
Yeah so what that means that spirit is while we're certainly we certainly have to react to hire or jet fuel prices yeah we can react a little bit more quickly and a little bit more resilient lead in most carriers -- we've not seen a big compression in our margins even the fuel prices have gone up.
Historically.
Yet you -- you said that you have more seats on the plane in fact in the and it's as the company's reduce the number bathrooms on planes.
In order to have more seats you have executives take out -- own trash.
You know there is a nine dollar fee act.
Ticket but then also it said on our on our little full screen there that when you change your ticket can be -- 115 dollars to change your ticket.
It's like there's some cash -- -- here that need your customers don't always love to you -- A lot of repeat business do you get complaints.
Well you -- we did we certainly get complaints and I think all airlines do but the fact is we run some of the highest load factors in the business.
And I think the customers who actually fly spirit absolutely understand.
The trade off -- stand that we below fair they're gonna pay a little bit for the extras but only the extras that they decide to use.
And if they don't use those extra services and features they actually save the money so most of the complaints that we -- About our pricing policies come from people who fly other airlines -- not necessarily.
Opening up up up up.
Think RA and how does that make you so much for coming on --
