Shifts in Airline Business Models

Airlines are experiencing significant transformations in their business models, with notable changes from carriers like Spirit Airlines. Historically known for unbundling services to offer low fares, Spirit is now transitioning to a bundling model, introducing four fare classes that include additional amenities like free snacks and Wi-Fi. This shift indicates a strategic move to attract customers seeking a more premium experience, as the airline acknowledges losing passengers to competitors. However, this approach raises questions about whether Spirit can successfully convert occasional fliers into loyal customers, considering its previous reputation for low-cost travel.