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Extra Fees on Spirit Airlines Raise Corporate Revenues

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The average Spirit passenger is paying more than $100 in optional fees for round-trip travel on a so-called
The average Spirit passenger is paying more than $100 in optional fees for round-trip travel on a so-called
In the deeply competitive world of airline industry profits, Spirit Airlines third-quarter profits, which were recently released, have surprisingly increased an impressive 98% compared to the same period last year. Spirit CEO Ben Baldanza said in a statement regarding the report, “It is becoming clear that Spirit’s customers understand that our ultra-low fares plus optional services offer them a total price that’s tough to beat.”

Those “low fares” are indeed where Spirit makes most of its money from unsuspecting fliers who are either unaware of the hidden fees or who are caught in a desperate transaction where they have little or no choice but to pay the fee. According to a recent Time magazine article, the base cost of Spirit’s flights rose 15.3% compared to the third quarter of 2012, reaching an average of $83 per flight.

And the extra charges are known as “ancillary fees”— which means anything outside of the cost of the ticket itself, have increased 5.2%, or $52 per flight, according to both the report and Time. They include fees for baggage, seat reservation, food, and more—were up 5.2%, hitting $52 per flight. This means that the average Spirit passenger is paying more than $100 in optional fees for round-trip travel on a so-called “low cost” airline.

The fee formula is proving to be a real revenue earner for all major airliners. One study, from IdeaWorks, predicts that ancillary revenues will peak close to $42.6 billion worldwide in 2013 for airlines, an increase from $36.1 billion a year ago.

From the Wall Street Journal, Time magazine and Spirit Airlines direct, here are some tips to save on your next flight with Spirit:

– Book on Spirit.com. This will save you $10 or more than booking on the telephone or through a third-party website.

– Don’t check your bags. Spirit charges range from $30 to $100 for checked and carry-on bags.

– Make sure your bag fits under your seat. Otherwise, be prepared to get hit with a $100 fee from Spirit.

– Bring only one carry-on bag. The fee for a second carry-on is again a hefty $100.

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