EasyJet's chief commercial officer Sophie Dekkers has warned that airlines are approaching the ceiling of what they can charge passengers for tickets, and urged the industry to adopt smarter revenue strategies amid persistent cost pressures. Speaking at the World Aviation Festival in Lisbon, Dekkers observed that carriers were grappling with "massive cost headwinds" stemming from inflation, fuel prices and airport charges. "We need to decide how to pass that on to the customer," she adds, while cautioning that simply increasing fares is no longer viable. "We've got almost to the limit of how much you can just keep putting your prices up," she says. "So it's about how do you do things more smartly." Dekkers recounted how a former EasyJet executive once proposed a universal £10 ($13) fare hikes across the board – an idea she dismissed as "disastrous". Instead, EasyJet is turning to data science to refine its pricing and revenue management. "Some of the stuff we are doing is really groundbreaking," she says, citing the integration of data teams into route planning and pricing decisions. At the same time, customer data has become more unreliable post-Covid, as closer booking windows lessen the ability to spot trends, necessitating a higher emphasis on gathering extra information and improving forecasting. EasyJet's response has been to embed data-science teams within its revenue management function to identify the most effective ways to increase earnings. That means data scientists are ingrained in route decisions, and become experts in revenue management. "It works brilliantly," says Dekkers. Previously, the UK airline looked to historical data to project consumer behaviour, but "now it's much more about forecasting and bringing external data in", including products such as Google Trends, to identify the right price point for individual markets. Another approach EasyJet has taken is to place the burden of price increases on ancillary revenues, which are more resilient to hikes than headline ticket prices. She notes that much of EasyJet's pricing is now automated, giving the example of its baggage charging, which is around 80% handled without regular human input. That means data scientists and revenue-management teams can better focus on the 20% of products that require close attention. The data teams at EasyJet often work in a small area to test out different methods on limited areas of the network, down to single routes. They can then compare the performance against other areas of the network and expand it outwards, if it works. Dekkers calls this the "sandbox" approach, allowing the data-science teams to play around with different techniques, scaling them up and down based on their successes or otherwise. "Sometimes, to be honest, it doesn't work, and we contract [the tests] down and find out what route the [new approach] is going to work on." She adds: "It's about giving people permission to go and try stuff. The [data-science team] are constantly sharing with me the tests they are doing." In the area of late market pricing, EasyJet has carried out 40-50 tests on how to maximise revenues, says Dekkers. Jacking up prices close to the flight is "not working most of the time", she argues, challenging what is a standard practice at many carriers. "What you don't know is: are [those airlines] selling any seats at [their higher prices]? So again, multiple tests is the way to go at it."

Spirit Airlines has received bankruptcy-court approval for a multi-tranche debtor-in-possession (DIP) financing facility of up to $475 million from its bondholders. The US low-cost carrier says the facility will provide financial flexibility to support normal operations during its Chapter 11 restructuring. Of the total financing, $200 million is immediately available to Spirit, it says. The US Bankruptcy Court for the Southern District of New York also approved Spirit's agreement with AerCap encompassing a $150 million payment from the Irish lessor to the airline, the rejection of 27 aircraft leases, and the resolution of all claims and disputes between the parties. Spirit says the agreement with AerCap will reduce operating costs by "hundreds of millions of dollars" and "provides for the future delivery of 30 aircraft". Of Spirit's 214 aircraft, 166 are leased, fleets data shows. AerCap ranks first in number of aircraft leased to Spirit, with 37 (19 A320neos and 18 A321neos). The carrier has 92 Airbus jets on order, 38 of which are to be leased from AerCap. "With these approvals in place, we are better equipped to build a stronger airline that delivers unmatched value to American consumers," states Spirit chief executive Dave Davis. Spirit's 29 August filing for Chapter 11 bankruptcy protection was its second in 10 months.

The European Commission has launched infringement proceedings against Spain over national legislation that restricts airlines from charging for cabin baggage, arguing that this breaches EU law on air services. In a formal notice sent to the Spanish government, the Commission argues that the nation's air navigation law conflicts with Regulation (EC) 1008/2008, which guarantees carriers the freedom to set fares. The Spanish law prohibits airlines from levying additional charges for hand luggage, regardless of size or weight, limiting their ability to differentiate between service tiers, in the Commission's view. Its move follows penalty decisions issued by Spanish authorities against five carriers that applied separate fees for supplementary cabin bags. The Commission contends that these decisions misinterpret a 2014 European Court of Justice (ECJ) ruling in case C-487/12. This clarified that hand baggage meeting reasonable criteria should be free whereas oversized items are subject to pricing freedom. Spain has two months to respond to the Commission's formal notice. If it fails to address the concerns raised, the case could escalate to a reasoned opinion – the next step before potential referral to the ECJ.