Spirit Airlines Makes Adjustments as Fuel Prices Hit Record Highs

Spirit Airlines attacks record high fuel prices by revising 2008 growth, cutting 15 percent of non-fuel costs, continuing to increase non-ticket revenue and continuing to expand to the Caribbean and Latin America.

Spirit is targeting a 15 percent reduction in non-fuel expenses ensuring Spirit’s costs remain the lowest in the Americas. Spirit is carefully evaluating every expense and is working with all stakeholders to ensure necessary objectives are met.

Spirit remains focused on growing revenue through non-ticket revenue products and services that add value rather than substantially raising fares, which stalls customer demand.

Spirit entered Colombia in May with the addition of Cartagena. Flights to Trinidad began in June. Bogota will begin July 24, 2008. Additionally, Spirit today filed an application with the U.S. Department of Transportation to serve Manaus, Brazil. Other growth opportunities are being evaluated in the broader Caribbean and Latin America region for 2009.

Starting September 2, 2008, service to Grand Cayman, Cayman Islands and Punta Cana, Dominican Republic, will be operated on a seasonal basis to better match capacity with demand.

Additional adjustments will be made to select markets during off-peak periods, and Spirit will retire five Airbus A319 aircraft by September. In addition, the airlines will make reductions in employees to coincide with these capacity adjustments.