Spirit Airlines the controversial carrier well known for offering cheap airplane tickets and cheap vacation packages, has announced a plan to sell $300 million worth of shares of its airline to the public. Travelers either tend to love Spirit for how cheaply it prices its base fares or dislike them for the added fees many have to pay when flying with them.
Spirit plans to retain half of the expected $300 million, using the remainder to pay off debt and other responsibilities. As of June 30th, Spirit owed almost $264 million in notes.
In announcing its intention to go public, Spirit said it is planning on expanding its fleet of planes from 32 at the end of this year to 65 by 2015. Spirit touted its increasing efficiency in its public filing, pointing out that it has increased its aircraft utilization to 13 hours per days in 09 vs. 9.1 hours in 06.
Spirit also noted that it is now averaging $31 per passenger in ancillary fees vs. $5 in 06. The airline claims that by charging increased fees it has lowered its base fares and empowered its customers to pay for only the services they want to use.
Spirit has been profitable during each of the last full three years, but experienced a loss in the first half of this year due to higher fuel and wage costs.
Spirit gained much notoriety earlier this year when it became the first airline to charge passengers to carry-on luggage that will not fit underneath passenger seats.
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