Spirit Airlines Incorporated (NASDAQ:SAVE) is one stock that accurately depicts a ‘dream run’. Since January 2013, Spirit Airlines Incorporated (NASDAQ:SAVE)’s stock has been on a constant uptrend, from the levels of $17 to current levels of $72, without experiencing any significant correction. Spirit Airlines is not only profitable, but does that while offering the cheapest airfares on some of the major routes within the U.S. Ben Baldanza, CEO of Spirit discussed what makes the company tick and its business model on Fox Business, recently.
Spirit Airlines Incorporated (NASDAQ:SAVE) has faced heat from the media earlier because of the seats being ‘non-reclineable’, but now it seems the same feature is a boon for the company . The reason for that is a recent fight that broke out in a competing airline’s flight when one of the customers used a gadget to prevent another customer from reclining his seat. Baldanza feels that one of the benefits of seats not reclining on a Spirit Airlines Incorporated (NASDAQ:SAVE)’s flight is that no one reclines on another’s space.
When it was mentioned that Spirit Airlines Incorporated (NASDAQ:SAVE)’s stock is up 56% year to date and over 135% on the year, Baldanza attributed that to the overall increase in capacity discipline in the airline industry that has increased fares and letting Spirit Airlines Incorporated (NASDAQ:SAVE) capitalize on that opportunity by offering lower fares.
“We can do that because we don’t cater to the structured business travel, If somebody else is paying for your ticket, you are probably not going to buy Spirit Airlines Incorporated (NASDAQ:SAVE), but if you are paying for the ticket yourself , we are a really good buy. We put more seats on our plane than our competitors, we don’t have Wi-Fi on our planes, we don’t feed you on our planes […],” Baldanza said.
As of June 30, 2014, Stephen Mandel’s Lone Pine Capital owns more than 3.5 million shares of Spirit Airlines Incorporated (NASDAQ:SAVE).
Disclosure: None
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