Transformation Series: Spirit Airlines

I remember the first, and only time, I flew on Spirit. We were taking a trip to visit family, and not only was it direct (hard to find for us in Hilton Head), but it was a great deal…almost too good to be true.

And it was too good to be true. By the time we paid for luggage (carry-ons that didn’t meet the unusually small size restrictions), tagged our own bags, and even paid to speak with a customer service agent at the airport, the “low-cost” fare ended up costing more than tickets on a major airline. The experience felt frustrating and, more importantly, untrustworthy.

What if the promise you built your brand on no longer matches the experience you deliver?

Fast forward: Spirit, just months out of bankruptcy, is now warning there’s “substantial doubt” about surviving another year.

Their story is a cautionary tale of misalignment between promise and perception. They built a model on “ultra-low-cost,” fueling growth by stripping down service and layering on fees. But as fares across the market dropped and customers realized Spirit often cost more than competitors, their value proposition unraveled.

The lesson? Spirit’s “ultra-low-cost” model unraveled when hidden fees created mistrust. Growth built on short-term tradeoffs eroded long-term value..

Here’s what Spirit teaches us:

• Short-term savings can destroy long-term trust. Nickel-and-diming may protect margins, but once customers feel misled, loyalty evaporates.

• Models must evolve with market expectations. Adding “premium” offerings now may not undo years of being branded as “cheap but painful.”

• Culture and incentives matter. Chasing efficiency without safeguarding experience compounds frustration and erodes loyalty.

• Clarity is essential. When surprise fees overshadow the thrill of a low fare, the relationship fractures.

Questions to ask yourself:

• Where might cost leadership be undermining brand identity or customer trust in your business?

• Are hidden friction points turning your advantage into a liability?

• Do your incentives reward short-term gains or lasting value?

• Have “cheap wins” replaced “customer wins”?

Future-proofing requires aligning promise and perception. Trust, not just math, sustains value.