You don't pay me to sell cheap.

Yesterday, Spirit Airlines filed for Chapter 11 bankruptcy. This news might shock the millions of passengers who once found cheap an acceptable value proposition. For me? Not so much. Selling cheap was never going to be enough to build a sustainable brand—or navigate the operational complexities of the airline industry.

Let’s be clear: cheap has its place. Sam Walton built Walmart into a global empire on the back of value-driven pricing. But Walmart and aviation aren’t the same game. Retail might thrive on relentless cost-cutting, but cheap isn’t just fragile in a service-driven industry like air travel—where satisfaction depends on expectations beyond safety and convenience and intricate supply chains make low margins a significant liability.

At Spirit Airlines, cost-cutting wasn’t just a strategy but a lifestyle. Executives were known to empty their own trash cans and turn off the lights before heading home. The ethos of frugality extended to every corner of the organization, from operations to customer experience.        

And for a moment, it worked. In 2023, Spirit carried 44 million passengers—a staggering number for an airline whose business model boiled down to unbundling every possible service. Tickets came cheap, but everything else—baggage, seat selection, snacks, water—came at a cost.

Somehow, Spirit squeezed us into planes as if we were packages, paying for our volume and weight, securing a space in what felt like a cubic-foot container. But here’s the thing: passengers aren’t packages.        

Passengers Aren’t Packages

Spirit Airlines excelled at managing costs, trimming everything, everywhere, all the time. They optimized every aspect of their operations, treating passengers like parcels in a highly efficient transportation pipeline. Spirit could move people from Point A to Point B at the lowest possible cost, like an industrial supply chain in the skies.

The foundational promise worked—as it often does in the fashion industry’s last cycle of discounts: an excellent tool for clearing inventory before it gets thrown away. And remember, in the airline industry, an empty chair is a ‘throw-away’ inventory. Spirit’s ultra-low fares attracted budget-conscious travelers who were willing to endure cramped seats, endless fees, and no-frills service to save money. Planes were—and still are—packed.

So why is Spirit struggling? Simple value creation theory: Spirit wasn’t selling anything of perceived value; they were selling a seat on the plane—nothing more, nothing less.

But here’s the problem: passengers don’t see themselves as cargo. Flying isn’t a mere transaction. It’s an emotional experience. It’s about visiting loved ones, landing that deal, or escaping on long-overdue vacations. Customers don’t want to feel like they’re being shipped—they want to feel cared for.        

What Spirit lacked in substance, they made up for in style. The brand had a bold and distinctive voice, like a shallow person in gala wear. But brands aren’t about how you look; brands are about who you are. Spirit looked bold, with its bright yellow planes and witty marketing messages. We all recognized the brand—it was on our “top of mind” all the time—but we didn’t desire it. It lacked a soul.

Looks can take you far, but not far enough—not when those bold, witty looks are paired with negative perceptions and passengers feel like packages riding on a shiny yellow plane.

The Lesson: You Don’t Pay Me to Sell Cheap

When clients approach me about brand strategy, and the conversation turns to price as one of the tools in the positioning arsenal, my answer is simple: You don’t pay me to sell cheap.

You pay me to design a brand experience that captivates. You pay me to delight your customers so thoroughly that you hold the upper hand at the bargaining table. You pay me to make your brand so irresistible, so desired, that price is, at best, an afterthought.        

Spirit Airlines’ bankruptcy is a reminder of what happens when you focus too much on cheap and not enough on value. Cheap might fill planes, but it doesn’t build brands. It doesn’t create trust or loyalty. And in the end, it doesn’t survive.

Passengers aren’t packages. And the price isn’t the point. The real challenge—the one Spirit didn’t take on—is creating an experience so valuable that people are willing to pay more for it—or at least feel proud they paid less.