Travel observers wonder: Will Spirit survive horrible publicity?

Spirit Airlines had a rough week, pr-wise, with its raising carry on fees to the highest level ever and in a separate incident, a stubborn airline refusal to refund a $197 airfare for a dying US veteran. This left airline observers to wonder: will the overwhelmingly bad publicity cripple the airline’s bottom line?

The immediate answer (for now, at least): The low-cost airline continues to be profitable despite all the howls of outrage.

A key airline gauge, revenues per available seat, increased 10% in the first three months of this year over last year.

"Although these items are generating negative media attention, the customers still come because, we believe, of the cheap airfares offered and the option to buy whatever upgrades that they want," said airline analyst Ray Neidl.

Spirit Airlines’ new fees made it the first US airline to charge so much for a service that most other airlines offer for free.

Travel observers in unprecedented agreement raged that the new fees would hit hardest on the least experienced travelers who may arrive at the airport without knowing the new rules.

"Its latest move — charging up to $100 each way for a carry-on bag starting in November — shows contempt for inexperienced travelers," wrote the Detroit Free Press, adding:

"It especially shows contempt for the elderly, who are less likely to use the Internet and more likely to be unfamiliar with baggage rules."

Others noted that Spirit Airlines business model was based on cynically taking advantage of the "naïve, the newbies and the confused."

"Skyway robbery," was how Tom Parsons, chief executive of Bestfares.com, referred to the carry-on baggage fees.

"Many people won’t realize the fee until they get to the gate," said Parsons. But he added that most people will leave the line and go back to a kiosk to avoid paying the extra money.

Passengers who show up at a Spirit departures gate with a carry-on bag already pay $45, but that fee is set to more than double on Nov. 6, costing travelers up to $200 round trip.

Those who plan ahead can save money. Paying at the airport counter or kiosk will cost $50. Pay at a reservation center and it costs $40. Pay online and it drops to $35. Join Spirit’s $9 Fare Club and it’ll cost flyers $25.

The public reaction was immediate. And all bad.

"I don’t understand the point of Spirit Airlines if by the time I’m done paying fees, my [flight] costs more than a 1st class ticket on Delta," one user wrote on Twitter.

"That is one reason why I will NEVER fly Spirit Airlines," another chimed in.

On its website, Spirit said it offers "ultra low base fares" and allows "customers the freedom to choose only the extras they value."

"We don’t want any of our customers to wait until they get to the boarding gate to pay for their carry-on bags as this delays the boarding process for everyone," said a spokeswoman for Spirit.

"We expect that our new $100 fee charged for those who wait until they get to the gate will ensure that customers purchase their bags before arriving at the gate," she said.

Spirit also took more heat last month when the airline rejected a request for a ticket refund for Jerry Meekins, a 76-year-old Vietnam veteran in Florida. He bought a ticket to visit his daughter before learning that terminal cancer had made him too weak to fly.

Spirit CEO Ben Baldanza made the situation worse by telling the media Meekins should have bought travel insurance and didn’t deserve help from Spirit.

Baldanza had faced a barrage of criticism from Meekins’ fellow vets, as well as two Facebook campaigns. "Boycott Spirit Airlines" Facebook page jetted past 30,000 supporters and a second Facebook page appeared calling for Baldanza’s ouster.

Baldanza argued that making an exception would be like an insurance company paying to fix a fire-ravaged home even though the owner didn’t have a policy before the fire before finally relenting and agreeing to a refund.

Spirit was the first carrier to introduce fees for carry-on bags two years ago; Allegiant Airlines recently followed suit.

With that in mind, will other airlines follow the spirit of Spirit?

"And that’s my main worry. If airlines that are trying to operate ethically and with customer service in mind can’t make money while the greedy and customer-despising Spirit rakes in the dough, it will be only a matter of time before other airlines start sinking to its level," writes Ellen Creager of the Detroit Free Press.

Spirit last year made a profit of $76.4 million. One third of its operating revenues was from its fees for carry-on and checked bags, choosing seats in advance and extra legroom.

Some commentators said other airlines have generally avoided Spirit’s "money-grubbing tactics." But in the latest incidents, they also asked how soon it might be before Spirit takes another far-fetched charge: for using the toilet? Some said it’s just a matter of time.

By David Wilkening