Spirit Airlines Incorporated (SAVE) Earnings: An Early Look

The coming merger between American and US Airways Group, Inc. (NYSE:LCC) has many investors wondering whether further consolidation in the industry is possible. Although further mergers among major airlines would probably raise antitrust concerns, smaller airline buyouts might pass FTC muster. But it’s hard to see how Spirit would integrate itself with a major airline, unlike regional carrier Alaska Air Group, Inc. (NYSE:ALK), which sports a valuable hub in Seattle and a unique mix of business and leisure travelers.

Look closely at Spirit’s earnings report to see how its ancillary fee revenue compares with its regular fare revenue. With non-ticket revenue making up more than 40% of total sales last quarter, a further ramp-up will tell an interesting story about how willing passengers are to pay fees to get cheap fares.

The article Spirit Airlines Earnings: An Early Look originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter: @DanCaplinger. The Motley Fool owns shares of Spirit Airlines.

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