Spirit Airlines has reported its traffic grew by 18.3 percent YoY (year-over-year) in August 2016 and YTD (year-to-date), traffic has grown by 23.1 percent YoY, the company said.
The traffic growth for fiscal 2015 was higher at 27.1 percent YoY. The traffic growth was boosted by lower airfares, strong network expansion, and the overall strength in the industry and economy.
Airline traffic is measured by RPM (revenue passenger miles). RPM is the number of revenue passengers multiplied by the total distance traveled.
Spirit Airlines said its market strategy is to reduce base airfare as much as possible, unbundling all of the other services like carry-on bags, checked bags, boarding passes, and food and drinks. Users only pay for the services that they use and don´t subsidize others´ travel.
Spirit Airlines forms 2.0 percent of the SPDR S&P Transportation ETF (XTN). XTN also holds 2.8 percent in both United Continental (UAL) and American Airlines (AAL), 2.5 percent in Alaska (ALK) and 2.4 percent in JetBlue (JBLU). It also holds 2.3 percent in Allegiant Travel (ALGT), 2.2 percent in Delta Air Lines (DAL), and 2.1 percent in Southwest Airlines (LUV).