Spirit Airlines Incorporated (NASDAQ:SAVE) CEO Ben Baldanza spoke with FOX Business Network’s (FBN) Maria Bartiromo about the airline industry and ticket prices, saying, “customers will likely see lower fares as oil prices low.” Baldanza also commented on his capital expenditure (CAPEX) for 2015 saying, “our CAPEX we are bringing on 15 new airplanes” and that “overall we are looking at a pretty big cap investment year, mostly on the airplane side.”
Spirit Airlines CEO on whether airline tickets are going down because of oil prices:
“Yeah, absolutely. Customers will likely see lower fares as oil prices low – if they stay low it’s fundamentally still a demand based business however and there is times where supply and demand is in the suppliers side, sometimes in the demanders side, so prices are going to reflect supply and demand more than just input costs.”
Spirit Airlines CEO on what airline bookings look like in 2015:
“Our crystal ball in 2015 is still a little cloudy right now, but our bookings for the holiday period look very strong. Lots of travel, you know, the big pick up for travel in 2015 will start sometime in March and it’s still a little premature to see that yet, but certainly holiday bookings look very, very strong.”
Spirit Airlines CEO on his CAPEX for 2015:
“Our CAPEX we are bringing on 15 new airplanes, so that’s the biggest thing. Airplanes are expensive and we’re bringing on about 15 new ones in 2015. We’re also spending a little bit on technology and some support to make sure those airplanes fly safely, so overall we are looking at a pretty big cap investment year, mostly on the airplane side.”
