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Ben Baldanza, Spirit Airlines CEO, on how the airline is growing despite high fuel costs, plus the future of travel fees for the company.
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Lines are showing significant growth this quarter despite all of that then about the -- is the CEO of Spirit Airlines.
And he joins us right now -- I was looking at these numbers in your first quarter revenue -- up.
30% -- looking very impressive and then you flip it over to the stock which is also translating very nicely up a 104%.
Year over here.
Think if you have to distill the number one thing that you feel that you guys are doing right.
Would be.
Well thank you that is you know we think what we're doing right it is we have a business model that clearly works because it gives customers the power to save.
By bundling very very low base fares with a series of options that let them pay only for what they care about.
Which is a lot of things actually wants your.
-- -- what's -- stuck on the airplane and suddenly you want to know little creature comforts I'll I wanna pillow back us money your blanket cost money.
And of course the carry -- fees in -- 40% of your revenues for spirit.
Come from these ancillary fees.
Are you seeing any push back at all or do you feel that your baseline ticket prices become so low the people are okay with sort of a cafeteria out on its.
We think the trade -- is good I mean let me tell you for the first quarter our average -- was under 77 dollars.
That's really -- I mean he can't you can't go out to dinner for that.
And guess so with a fair 177 dollars pain for the things that are extra as long -- you surely want them is really good we instead of in fact instead I think you -- feast we think you should -- give -- the options you guys give people the power to prosper we give them the power to save money.
But on everything option.
-- if we can't -- -- ethnic and this is why we like band does you know our slogan power to prosper OK so let me get to what what's next.
What other ideas to Spirit Airlines have up their -- and -- -- have to come to you guys will be charging for the restaurant you want to now.
Well you know you know we we won't charge for the restaurant our our basic policy is if it's necessary for the travel it's included in the base fare and I for one thing -- the bathrooms are necessary she can't just -- And -- general you know we we think of a lot of ways that we can raise our ancillary revenue but every time that we do that we correspondingly lower our base fare.
Always we can do that -- certainly adding more optional products -- being maybe a greater part of the customers' total travels and not just -- airline ticket.
You're -- you're expanding both domestically and interestingly enough internationally.
Though and sometimes your best options in in any business are when you see a competitor labeling.
And struggling American Airlines right now in bankruptcy can you capture some of its international market share.
What what countries are we talking about that you'd like to travel to.
Well we we've announced -- Begin service -- between Dallas and Toluca Mexico which is just outside Mexico City.
But let me state.
Our our business model is not predicated and stealing traffic from other people we go into large markets where the fares are high.
Lowered the fares and that stimulates a lot more travel and then we carry that growth.
So we're now serving up.
Fifteen cities nonstop from Dallas for example.
But that's really unrelated to Americans bankruptcy it's more about the fact that the -- there were high and we can make the market in Dallas a lot bigger.
American can keep their flyers we want to take all the stimulated traffic.
Well the folks here Fox Business are whispering to me thank god air won't be charged for the bathrooms a -- in charge for -- things you look at thank you very much.
Thanks a -- lives than about -- is the CEO of spirit air actually can breathe a sigh of relief here.
Gonna favor the -- thank goodness Liz thank you why some states may not be able to clear out all of their foreclosed properties until get this the next century.
Details ahead on -- well.
