Category Archives: Spirit Airlines

Airbus delivers first U.S.-produced A320 to Spirit Airlines

The first delivery of an Airbus A320 aircraft (N650NK) from the Airbus U.S. Manufacturing Facility has taken place in Mobile, Alabama. The aircraft, delivered to Spirit Airlines, is the 37th overall delivery from the U.S. facility since production began in July 2015. The previous 36 aircraft were A321 aircraft, making this delivery another important milestone for Airbus.

 

The A320 Family is the world’s best-selling single-aisle product line and comprises four models (A318, A319, A320, A321) Typically seating 150 passengers in two classes, or up to 180 in a high-density layout for charter and low-cost operations, the A320 is in widespread service around the world, flying routes ranging from short commuter sectors to coast-to-coast U.S. flights. To date, the Family has won over 13,200 orders and more than 7,700 aircraft have been delivered to some 400 customers and operators worldwide.

Airbus announced its commitment to build a single-aisle assembly line in Mobile, Alabama in July 2012, and broke ground for the $600 million facility in April 2013. The ceremonial inauguration of the plant took place in September 2015. Airbus anticipates delivering four aircraft per month from the Mobile plant by the end of this year.

Photo: Airbus.

Spirit Airlines:

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Spirit Airlines states 2Q results were impacted by 850 pilot-related flight cancellations

Spirit Airlines Airbus A320-232 WL N641NK (msn 6566) BWI (Tony Storck). Image: 928992.

Spirit Airlines, Inc. reported second quarter 2017 financial results.

  • GAAP net income for the second quarter 2017 was $78.1 million ($1.12 per diluted share), or $79.1 million ($1.14 per diluted share)1excluding special items.
  • GAAP operating margin for the second quarter 2017 was 18.9 percent, or 19.1 percent excluding special items1.
  • Spirit ended the second quarter 2017 with unrestricted cash, cash equivalents, and short-term investments of $969.6 million.
  • Spirit’s return on invested capital (non-GAAP, before taxes and excluding special items) for the twelve months ended June 30, 2017 was 20.3 percent2.

“The progress we made with our revenue initiatives, as well as the underlying revenue trends as we headed into the June quarter, were encouraging.  Unfortunately, given the level of operational disruptions and the associated financial impact, the second quarter 2017 performance overall was disappointing. We sincerely apologize to our customers who were affected by the flight disruptions during the quarter,” said Bob Fornaro, Spirit’s President and Chief Executive Officer.  “Despite our financial and operational challenges in the second quarter 2017, the changes in our pricing and revenue management strategies helped to drive year-over-year improvement in passenger and non-ticket revenue per segment — this is the first time in over two and a half years either of these metrics increased year over year.”

Revenue Performance

For the second quarter 2017, Spirit’s total operating revenue was $701.7 million, an increase of 20.1 percent compared to the second quarter 2016, driven by a 9.3 percent increase in flight volume and a 7.1 percent increase in operating yields.

Total revenue per available seat mile (TRASM) for the second quarter 2017 increased 5.7 percent compared to the same period last year. During the second quarter 2017, the Company’s results benefited from the calendar shift of Easter, as well as Company driven revenue initiatives and a strong underlying demand environment.

On a per passenger flight segment basis, total revenue for the second quarter 2017 increased 8.5 percent year over year to $113.07 with ticket revenue per passenger flight segment increasing 13.4 percent to $59.93 and non-ticket per passenger flight segment increasing 3.5 percent to $53.14.

Cost Performance

For the second quarter 2017, total GAAP operating expense, including special items of $1.5 million3, increased 23.1 percent, or $106.6 million, year over year to $568.9 million.  Adjusted operating expense for the second quarter 2017 increased 25.1 percent, or $113.7 million to $567.5 million4. The increase in both GAAP and adjusted operating expense was primarily driven by an increase in flight volume, higher passenger re-accommodation expense (recorded within other operating expenses), and higher fuel rates.

Aircraft fuel expense increased in the second quarter 2017 by 25.7 percent, or $29.1 million, compared to the same period last year, due to a 12.9 percent increase in the cost of fuel per gallon and a 11.1 percent increase in fuel gallons consumed.

Spirit reported second quarter 2017 cost per available seat mile (“ASM”), excluding special items and fuel (“Adjusted CASM ex-fuel”), of 5.83 cents4, an increase of 10.0 percent compared to the same period last year, driven primarily by higher passenger re-accommodation expense per ASM and higher depreciation and amortization per ASM.

Pilot-Related Cancellations

During the second quarter 2017, the Company had over 850 pilot-related flight cancellations.  The Company estimates these pilot-related cancellations adversely impacted its second quarter 2017 results by approximately $45 million (approximately $25 million of revenue loss and $20 million of additional operating costs, primarily related to higher passenger re-accommodation expense).  The Company estimates that had these cancellations not occurred, TRASM for the second quarter would have been up approximately 6.5 percent year over year (with the Easter shift accounting for approximately 400 basis points of the year over year increase) and Adjusted CASM ex-fuel would have been up approximately 2.0 percent year over year.

“While our cost performance for the second quarter was not satisfactory, we do not believe it materially changes our long-term cost outlook and are confident that we will continue to maintain, or grow, our relative cost advantage,” said Ted Christie, Spirit’s Executive Vice President and Chief Financial Officer.

Labor

Spirit and its pilots, represented by the Air Line Pilots Association, remain in open contract negotiations under the supervision of the National Mediation Board.

Fleet

Spirit took delivery of three new A320ceo aircraft and one new A321ceo aircraft during the second quarter 2017, ending the quarter with 104 aircraft in its fleet.

Recent New Service Announcements

Hartford – Orlando (4/27/17)
Hartford – Myrtle Beach (4/27/17)*
Akron-Canton – Las Vegas (4/27/17)
Akron-Canton – Myrtle Beach (4/27/17)*
Newark – Houston (4/27/17)
Houston – Seattle (4/27/17)*
Baltimore – New Orleans (5/25/17)
Baltimore – Oakland (5/25/17)*
Baltimore – San Diego (5/25/17)
Baltimore – Seattle (5/25/17)
Cleveland – New Orleans (5/25/17)
Detroit – Oakland (5/25/17)*
Detroit – Seattle ( 5/25/17)*
Orlando – New Orleans (5/25/17)
Pittsburgh – Dallas (5/25/17)
Pittsburgh – Myrtle Beach (5/25/17)*
Hartford – Fort Lauderdale (6/15/17)
Pittsburgh – Fort Lauderdale (6/16/17)
Pittsburgh – Las Vegas (6/22/17)
Pittsburgh – Orlando (6/22/17)
Pittsburgh – Los Angeles (7/13/17)
Pittsburgh – Houston (7/13/17)
Pittsburgh –  Fort Myers (11/9/17)**
Pittsburgh – Tampa (11/9/17)**
Hartford – Fort Myers (11/9/17)**
Hartford – Tampa (11/9/17)**
Baltimore – Cancun (11/9/17)
Chicago – Cancun (11/9/17)

* Seasonal Summer Service
** Seasonal Winter Service

Copyright Photo: Spirit Airlines Airbus A320-232 WL N641NK (msn 6566) BWI (Tony Storck). Image: 928992.

Spirit to serve Newark from Fort Lauderdale/Hollywood, Orlando and Myrtle Beach

Spirit to serve Newark from Fort Lauderdale/Hollywood, Orlando and Myrtle Beach

Spirit Airlines commencing on October 30, 2016 will serve Newark Liberty International Airport with daily service to both Fort Lauderdale/Hollywood and Orlando with mainly Airbus A321 aircraft.

Additionally the carrier will add the Newark – Myrtle Beach route with daily flights starting on March 9, 2017 according to Airline Route.

Copyright Photo: Spirit Airlines Airbus A321-231 WL N660NK (msn 6804) FLL (Brian McDonough). Image: 931986.

AG Aircraft Color Prints 6.4.11

 

CEO Ben Baldanza departs from Spirit Airlines, replaced by ex-AirTran CEO Robert L. Fornaro

 

Spirit Less Money More Go logo

Spirit Airlines, Inc. (Fort Lauderdale/Hollywood) has announced Robert L. Fornaro has been appointed President and Chief Executive Officer, effective immediately succeeding Ben Baldanza.

According to the airline;

“Fornaro, a seasoned airline executive with more than 35 years of experience in a variety of senior leadership and advisory roles, succeeds Ben Baldanza, who joined Spirit in 2005 as Chief Operating Officer and served as President and CEO since 2006.”

Ben Baldanza was instrumental in transitioning Spirit into America’s first ultra low-cost carrier following the Ryanair model.

Robert Fornaro was appointed to the Spirit Airlines Board of Directors in May 2014. He previously served as the President and Chief Executive Officer of AirTran Holdings Inc. from November 2007 to May 2011, after which he served as a consultant to Southwest Airlines Co. and AirTran Airways Inc. He also served as President and Chief Operating Officer of AirTran Airways Inc. from March 2001 to November 2007 and as President and Chief Financial Officer from March 1999 to August 2000. He has also served as Senior Vice President of Planning for US Airways and as Senior Vice President of Marketing Planning at Northwest Airlines. He served as the Chairman of AirTran Airways Inc. from May 2008 to May 2011 and served on its board from 2001 to May 2011. He served as Chairman of the Board of AirTran Holdings Inc. from 2008 to May 2011.

Spirit Airlines to add two seasonal routes from Minneapolis/St. Paul

Spirit Airlines Airbus A321-231 WL N658NK (msn 6736) LAX (Michael B. Ing). Image: 920240.

Spirit Airlines (Fort Lauderdale/Hollywood) starting in April 2016, will begin new seasonal daily service between the Minneapolis-St. Paul International Airport (MSP) and the Boston Logan International Airport (BOS) and Philadelphia International Airport (PHL).

Spirit’s new seasonal service between Minneapolis-St. Paul and Philadelphia will operate from April 14, 2016 through November 9, 2016, and between Minneapolis-St. Paul and Boston will operate from April 28, 2016 through September 7, 2016.

This announcement follows Spirit’s recent announcement of new daily nonstop service between MSP and Atlanta’s Hartsfield-Jackson International Airport (ATL), also starting in April 2016. With these additions, Spirit will operate nonstop service from Minneapolis-St.Paul to 16 cities, including Atlanta (starting 4/14/2016), Baltimore/Washington DC, Boston (starting 4/28/2016), Chicago, Dallas/Fort Worth, Denver, Detroit, Fort Lauderdale/Hollywood, Fort Myers, Houston, Las Vegas, Los Angeles, Orlando, Philadelphia (starting 4/14/2016), Phoenix, and Tampa.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A321231 N658NK (msn 6736) arrives in Los Angeles.

Spirit Airlines aircraft slide show: AG Airline Slide Show

Route Map:

Spirit 12.2015 Route Map

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Spirit Airlines to start two new routes from Philadelphia

Spirit Airlines Airbus A319-132 N505NK (msn 2485) LAX (Michael B. Ing). Image: 930207.

Spirit Airlines (Fort Lauderdale/Hollywood) starting on April 29, 2016, will begin new nonstop service from the Philadelphia International Airport (PHL) to the Detroit Metropolitan Airport (DTW) and the Fort Lauderdale-Hollywood International Airport (FLL).

This announcement follows Spirit’s recent announcement of nonstop service between PHL and the Los Angeles International Airport (LAX), also starting in April 2016. With these additions, Spirit will operate nonstop service from Philadelphia to 8 cities, including Atlanta, Chicago, Dallas/Fort Worth, Detroit (starting 4/29/2016), Fort Lauderdale (starting 4/29/2016), Las Vegas, Los Angeles (starting 4/14/2016), and Myrtle Beach.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A319-132 N505NK (msn 2485) departs from LAX.

Spirit Airlines aircraft slide show: AG Airline Slide Show

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Spirit Airlines to add two more routes from Atlanta

Spirit Airlines Airbus A319-132 N506NK (msn 2490) LAX (Michael B. Ing). Image: 930238.

Spirit Airlines (Fort Lauderdale/Hollywood) announced today it will add two new cites to its nonstop service options from the Hartsfield-Jackson Atlanta International Airport (ATL). The daily service starts on April 14, 2016 between ATL and Minneapolis-St. Paul International Airport (MSP) and Louis Armstrong New Orleans International Airport (MSY).

With these additions, Spirit operates nonstop service from Atlanta to 17 cities, including Atlantic City, Baltimore/Washington DC, Boston, Chicago, Cleveland, Dallas/Fort Worth, Detroit, Fort Lauderdale/Hollywood, Fort Myers, Houston (Bush Intercontinental), Las Vegas, Los Angeles, Minneapolis-St. Paul (starting 4/14/2016), New Orleans (starting 4/14/2016), Orlando, Philadelphia, and Tampa.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A319-132 N506NK (msn 2490) departs from Los Angeles.

Spirit Airlines aircraft slide show: AG Airline Slide Show

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