Grounded Ambitions: Can Spirit and Wizz Soar Again?

Grounded Ambitions: Can Spirit and Wizz Soar Again?

In this episode of the Airline Weekly Lounge, hosts Gordon Smith and Jay Shabat tackle the challenges faced by Wizz Air and Spirit Airlines. They discuss Wizz Air's struggles with engine issues, market exits, and future growth opportunities, particularly in Eastern Europe. The conversation shifts to Spirit Airlines, highlighting its financial difficulties, rising costs, and leadership changes. Takeaways Wizz Air is facing significant operational challenges due to engine issues. Spirit Airlines reported a negative 29% operating margin in Q1 2025. Non-fuel costs for Spirit Airlines have increased by 70% since 2019. Wizz Air's market strategy is under scrutiny as they exit certain markets. Indigo Partners may adjust aircraft orders in response to Wizz Air's struggles. Florida remains a key market for low-cost carriers like Spirit Airlines. Leadership changes at Spirit Airlines may influence future strategies. Wizz Air's growth opportunities lie in Eastern Europe and Ukraine. The airline industry is experiencing a combination of bad luck and operational challenges. Both airlines need to find ways to reduce costs and improve profitability. Connect with Airline WeeklyLinkedIn: https://www.linkedin.com/company/airline-weekly/X: https://x.com/Airline_Weekly/Facebook: https://www.facebook.com/airlineweekly/Instagram: https://www.instagram.com/skiftnews/WhatsApp: https://whatsapp.com/channel/0029VaAL375LikgIXmNPYQ0L/Subscribe to @SkiftNews and never miss an update from the airline and travel industries.

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Airline Weekly Lounge Episode 63: All Smiles at American

Airline Weekly Lounge Episode 63: All Smiles at American

While the revenue story has improved for U.S. carriers, the cost story has become a headwind. Still, as American Airlines demonstrated in its fourth quarter results, costs are a headwind that can be o...

31 Tammi 201726min

Airline Weekly Lounge Episode 62: United on Top

Airline Weekly Lounge Episode 62: United on Top

By just a tenth of a percent, United’s fourth quarter operating profit margin bested that of Delta—and likely that of American, which reports later—making United, for the quarter, No.1 among the Big T...

24 Tammi 201732min

Airline Weekly Lounge Episode 61: Worse, But Still Good

Airline Weekly Lounge Episode 61: Worse, But Still Good

Rising labor costs at Delta dented its fourth quarter results significantly—but not enough to prevent the airline from posting a terrific profit for 2016. And the big story within the story is that re...

17 Tammi 201729min

Airline Weekly Lounge Episode 60: Around and Around

Airline Weekly Lounge Episode 60: Around and Around

SAS has tried and tried to turn itself around, but to no avail—at least judging by its recent earnings report. In fact, on profits alone, the airline’s third quarter was a step backward. What’s going ...

10 Tammi 201734min

Airline Weekly Lounge Episode 59: Kicking Off 2017

Airline Weekly Lounge Episode 59: Kicking Off 2017

Call it our year-in-preview show. In this first episode of 2017, we look at some of the more interesting stories that are ushering in the airline industry’s new year. Of course, 2017 doesn’t promise a...

3 Tammi 201743min

Airline Weekly Lounge Episode 58: Lufthansa's Ambitions

Airline Weekly Lounge Episode 58: Lufthansa's Ambitions

If anybody needed a reminder that the airline business is an interesting business, they got it last week as Air Berlin announced it will be handing over a big chunk of itself to arch competitor Luftha...

5 Loka 201635min

Airline Weekly Lounge Episode 57: South African Airways Is Troubled

Airline Weekly Lounge Episode 57: South African Airways Is Troubled

South African Airways finally published its fiscal year results for the 12 months ending March 2015. Yes, that’s 2015. And the result—a $442m net loss—wasn’t worth the wait. But with the Ebola scare a...

27 Syys 201631min

Airline Weekly Lounge Episode 56: Frontier Airlines CEO Interview

Airline Weekly Lounge Episode 56: Frontier Airlines CEO Interview

Because Frontier Airlines is a non-publicly-traded carrier (which, for one thing, means it doesn’t have earnings calls), it’s all the more interesting to interview the airline's CEO Barry Biffle. Of c...

20 Syys 201624min

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