Spirit’s Rough Quarter, New Junk Fees Ban and Saudi’s World Cup Plans

Skift Take

Today’s podcast looks at Spirit’s promise of change, Biden’s new efforts for families booking flights, and Saudi Arabia’s hefty World Cup bid.

Rashaad Jorden

Good morning from Skift. It’s Friday, August 2, 2024, and now here’s what you need to know about the business of travel today.

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Episode Notes

Spirit Airlines had a rough second quarter, posting a significantly higher loss than last year. CEO Ted Christie is promising big changes to the company’s operations, writes Airlines Editor Gordon Smith.  

Spirit said it registered a roughly $193 million net loss during the second quarter — up from a $2.3 million loss last year. Airline Weekly Senior Analyst Jay Shabat said a surplus of domestic seats and an increase in operating costs have hurt Spirit’s bottom line. 

Spirit is making changes to hit its goal of $100 million in annual savings. The company has temporarily frozen pilot and flight attendant recruitment in addition to furloughing about 240 pilots. Spirit is also deferring all incoming orders with Airbus for deliveries that were due to arrive between the second quarter of 2025 and the end of 2026. 

Next, the Biden administration is proposing a rule that would prohibit airlines from charging junk fees to seat families together on flights, writes Airlines Reporter Meghna Maharishi. 

Airlines would be barred from charging fees to assign seats to children 13 years of age or younger next to their parents or accompanying adults. The Department of Transportation said the proposed rule could save a family of four as much as $200 if seat selection fees cost $25 each. 

Airlines would also have to give families the option of a refund if adjacent seats aren’t available at the time of booking. 

Finally, Saudi Arabia has revealed its plans for hotels, stadiums and airports as part of its bid for the 2034 FIFA World Cup, writes Middle East Reporter Josh Corder. 

The kingdom’s 245-page bid book calls for ten of thousands of additional hotel rooms and 11 new stadiums, among other investments. Saudi officials said that all five proposed host cities will have modern airports connecting more than 250 international destinations. However, the bid book does not mention alcohol, which is prohibited in Saudi Arabia. 

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