Budget Airlines (Are They Really Worth It?)

It seems like every other day, there's a new story about airline bailouts and subsequent tomfoolery at the expense of flyers in the form of delays, cancelled flights, overbooked flights, and fees fees fees. It's as if the pandemic provided the ultimate excuse for airline executives to offer the worst service in the history of American (and I imagine global) aviation and the government is like, "yeah, totally, you guys have had a rough couple years, buy back your own stocks while we forgive exorbitant sums of PPP money" and the rest of us are like, struggling to breathe - literally and figuratively.

With the pressures of inflation and stagnant wages, it's no wonder that there has been increased popularity in the low-cost options offered by emerging budget airlines. But are these cheap flights worth the hype? Let's do a cost/benefit analysis in order to understand whether there's true value in ditching the big guys for the promised discounts that Spirit and Frontier, among others, tout.

The Background

As a frequent traveler, I'm generally pretty laid back when it comes to delays and the cost of flights since my responsibilities in life are limited with no kids and a decent income. But one thing that I have noticed is that the cost of flying itself seems to have gone up despite record overbooking per flight and flight cancellations that never fail to bring a headache to the traveling process (read more about your entitled compensation if this happens to you here - airlines are required to provide same-day compensation in most cases). Flights to Orlando from Columbus alone have doubled and round trip fares to and from Cartagena, Colombia have steadily increased between the dates that we've visited with nearly the same flight pattern each time (December 2021, May 2022, January 2023) - so much so that the only viable option for the majority of travelers is choosing a budget airline on a first-look basis.

When my husband and I noticed that Spirit began operating commercial flights to Colombia, we were really excited because American Airlines and United have generally been an inaccessible price point since the pandemic began. We used to fly to Mexico via American Airlines with one connection while we were both in college, and the same flights today cost $475 at a minimum per traveler, in one of the best time frames to book them (approximately 3 months prior to the travel date). Which begs the question - how are traditional airlines surviving in the age of Spirit & Frontier?

Going through the check-in process in generally any airport includes lines and lines for the Spirit desks with dozens of Spirit kiosks sprinkled throughout. In the United States, Frontier has also picked up decent market share (Statisa - Domestic Market Share of Leading US Airlines), and a recent merger announcement between Spirit and JetBlue will undoubtedly seize a larger portion of the aviation market with joined forces. These carriers have become super popular recently, but it's important to consider how budget airlines work. They rely on a business model that itemizes each part of the flight process, from baggage, to seats, to snacks. Nearly every Spirit flight we've been on in recent history is FULL and runs the risk that your carry-on bag will be checked against your will if you didn't pay up for a seat closer to the front. The early iterations of the Spirit fleets of aircraft were dreadfully uncomfortable and unsettlingly rickety, but the prices were also truly budget fares.

The airline industry has done an excellent job in capitalizing on the plight of the American people across the ages, and legend has it that pre-2008 baggage was *gasp* included in your flight cost. Because who doesn't fly with stuff. Airlines used the Great Recession of 2008 and increasing jet fuel prices as an excuse to start charging for luggage. And then never really stopped when the economy recovered. And then nobody ever said anything to them, so they're still doing that two decades later.

Another important point to mention here is that in 2010, the IRS ruled that baggage fees are tax-free income for airlines (an informational graphic on the evolution of baggage fees can be seen here). This gives airlines great incentive to jack up their baggage fees as high as they can without compromising filling the seats on their flights. Can you guess which airline was the first to separate these costs out and start charging for carry-on luggage after this happened? You got it - it was Spirit.

Seems crazy in the first place right? Fast forward to mid-pandemic, and here we are. Paying for even more stuff on the so-called budget airlines. Need a cup of water on your flight? Don't even think about it and if you do - it's $4.50. The acclaimed business model boasts the availability to only purchase what you need, but if you still need everything that a traditional airline offers, is it really worth it? And, is it worth giving up more convenient flight times and quicker lines for a "deal"?

Case Study

Let's take a look at our Cancun destination for the same dates via Spirit and American Airlines and assume that we have one carry-on and one checked bag, in addition to our personal item in the cabin. Below you'll see both itineraries (as of 2/3/2023) and the total round-trip flight costs, which include seat selection and carry-on bags. The only difference you'll see is that in addition to the Spirit flight total we'll need to include an additional $10 for our checked bags - $5 each way. Each site offers an option to bundle the baggage costs and seat selection costs with your ticket purchase, however American Airlines does not charge you to bring a carry-on, and their bundle only includes the cost of the checked item and seat selection. Their standard checked baggage cost is $30 per checked bag for most destinations outside of this bundle option, where paying for your checked bag and carry-on at the airport for a Spirit flight costs $59 for your carry-on and up to $79 for a checked bag depending on destination. At the very least - pay for your bags before you get to the airport regardless of the airline.

American Airlines

Spirit Airlines

When we compare the same destination on the same dates with one connection both ways, the costs aren't too far apart. $589 all-in through American Airlines' bundle option and $539 through Spirit. So in theory, Spirit does offer the budget option, right? We saved $50 per passenger!

But we also don't get any snacks through Spirit, so that's a bummer. Not a huge deal, right? Well, we also can't charge our devices on most Spirit flights since they don't offer charging ports on most of their fleet like American Airlines does. Oh well, just charge your stuff in the airport, right? But oh man, we picked up a layover of 8 hours and 15 minutes on our way home. Now that's not ideal.

Still wondering about Frontier? They don't fly back to Columbus on the 9th as of today, so we've selected an option for the 10th of May, and the only flights offered are overnight options with travel times of 11+ hours both ways. And it still costs an additional $105 PER DIRECTION for our luggage.

Frontier

None of these scenarios really consider the fact that if we didn't need to check a bag at all and didn't care where we sat on the plane, it's very likely that the traditional airline may have resulted in a lower price, given the steep carry-on price tacked onto the Spirit flights both directions but not on the American Airlines flights.

So, yes, for this trip that we're booking today, we did save money through a budget airline option. But was it worth all the things we gave up that our traditional airline option offers?