Originally Posted by
jsloan
Spirit's business model is entirely different from UA's, and they're doing quite a few things that United can't do themselves, like pay their employees substantially less than UA does. Spirit's cost per available seat-mile is about half of UA's, meaning that they can actually profit on economy passengers -- but most of their profit is coming from ancillary charges. $55 -- each way -- for a carry-on paid at the airport, for example.
Spirit's CASM is certainly less than UA's but UA's is an average across all cabins/services. I don't think we have the Y vs Y data but it must be closer.
The ancillary charges from Spirit is really part of their air fare, the base is never more than UA's BE fares.