Category Archives: Spirit Airlines

Spirit Airlines completes LaGuardia Terminal move, all flights now operating from historic Marine Air Terminal

Spirit Airlines today announced the completion of its terminal move at LaGuardia Airport (LGA) with all Spirit flights now calling Terminal A home. Over the past year, Spirit maintained a split operation between Terminal C and Terminal A, also known as the Marine Air Terminal.

The move has enhanced the LGA Guest experience with all flights now consolidated in one of the most convenient locations at LaGuardia. Additionally, the move also benefits Guests by streamlining Spirit’s operation at the airport.

Spirit Airlines at LaGuardia Airport:

Destination

Frequency

Nashville (BNA)

1x daily

Dallas Fort Worth (DFW)

1x daily

Detroit (DTW)

1-2x daily

Fort Lauderdale (FLL)

4x daily

Los Angeles (LAX)

1x weekly (Saturday only)

Orlando (MCO)

1-2x daily

Miami (MIA)

2x daily

Myrtle Beach (MYR)

2x daily

Phoenix (PHX) (Seasonal through 4/16/2022)

1x weekly (Saturday only)

San Juan (SJU)

1x weekly (Saturday only)

Tampa (TPA) (Seasonal through 5/4/2022)

1x daily

The Marine Air Terminal was built in 1939 and is one of two passenger terminals in the country remaining from the first generation of air travel. The terminal is also home to a massive 12-foot-high, 235-foot-long mural “Flight” by James Brooks that encircles the interior wall of the terminal’s rotunda and tells the story of human flight.

From the National Park Service:

The Marine Air Terminal at La Guardia Airport in New York City remains the only active airport terminal dating from the first generation of passenger travel in the United States–the “Golden Age of the Flying Boat.” The Marine Air Terminal, an Art Deco building designed in 1939 by William Delano of the firm Delano & Aldrich, is comprised of a central circular core of two stories with an attic from which a rectangular entrance pavilion and two symmetrically opposed one-story wings project. Inside the terminal hangs “Flight,” a mural measuring 12 feet in height and 237 feet in length. Completed by James Brooks in 1940, “Flight” depicts the history of man’s involvement with flight.

Pan Am's Yankee Clipper
Pan Am’s Yankee Clipper made its first flight across the mid-Atlantic on March 26, 1939. Photo courtesy of http://www.panamair.org

By the early 1930s, commercial airlines and airports were developing due to the Federal government’s use of private contractors for postal transport andย Charles Lindbergh’sย famous transatlantic flight. New York was in dire need of a new airport by 1934 when Fiorello H. La Guardia was elected mayor. Plans for the airport, which was to be federally sponsored and funded through the Works Progress Administration (WPA), were approved by President Roosevelt on September 3, 1937. Only six days later, the Mayor presided over groundbreaking ceremonies and construction proceeded rapidly. At 558 acres with nearly four miles of runways, the $40,000,000 airport was the largest and most expensive in the world. New York City Airport–La Guardia Field opened on October 15, 1939 and the Marine Air Terminal was dedicated in March 1940. The first flight from the Marine Air Terminal by a Clipper departed on March 31, 1940, carrying a crew of 10, nine passengers and over 5,000 pounds of mail and landed in Lisbon 18 hours and 30 minutes later. These Clippers–with a wing span of 152 feet, a cruising speed of 200mph and a capacity to carry 72 passengers–were luxurious. The two-deck interior featured dining rooms, private compartments and sleeping sections. However, this glamorous era of the Clippers was brought to an abrupt halt by the outbreak of World War II. By the end of the war, technological advances in airplane design had made the Clippers obsolete and the Marine Air Terminal was converted for the newer airplanes. Today the Marine Air Terminal is used by commuter airlines, air taxis, private aircraft, Signature Flight Support (a fixed-base operator) and a weather service.

Spirit Airlines adds four new routes from Newark

Spirit Airlines today announced four new routes atย Newarkย (EWR) with daily nonstop flights toย Indianapolisย (IND),ย Los Angelesย (LAX),ย Oaklandย (OAK) andย Pittsburghย (PIT).

As a bonus, Spirit will also add a temporary route toย Louisvilleย (SDF) giving New Jersey Guests easy access to the Kentucky Derby. The two SDF flights will only operate onย May 5ย andย May 8.

Spirit’s New & Existing EWR Routes:ย ย 

Destination:

Flights Available:

Launch Date:

Atlanta (ATL)

2x Daily

Existing Service

Austin (AUS)

Daily

Existing Service

Nashville (BNA)

Daily

Existing Service

Fort Lauderdale (FLL)

4x Daily

Existing Service

Houston (IAH)

2x Daily

Existing Service

Indianapolis (IND)ย NEW

Daily

June 22, 2022

Las Vegas (LAS)

2x Daily

Existing Service

Los Angeles (LAX)ย NEW

Daily

May 5, 2022

Orlando (MCO)

4x Daily

Existing Service

Miami (MIA)

Daily

Existing Service

New Orleans (MSY)

Daily

Existing Service

Myrtle Beach (MYR)

2x Daily

Existing Service

Oakland (OAK)ย NEW

Daily

August 10, 2022

Pittsburgh (PIT)ย NEW

Daily

June 22, 2022

Fort Myers (RSW)ย SEASONAL

3-4x Weekly

Existing Service

San Juan (SJU)

Daily

Existing Service

Tampa (TPA)

3-4x Weekly

Existing Service

Spirit Airlines announces three new routes from Las Vegas

Spirit today announced an expansion out west with new service to Albuquerque International Sunport (ABQ), Boise Airport (BOI), and Reno-Tahoe International Airport (RNO). All three new markets will kick off service with daily nonstop flights to Harry Reid International Airport in Las Vegas (LAS) in August 2022.

Adding the new service increases the carrier’s presence in Las Vegas to 41 nonstop destinations and up to 75 peak-day departures. This total represents an almost 30% year-over-year increase from Spirit’s service to LAS. Guests traveling from ABQ, BOI & RNO also gain connection opportunities through LAS to more than a dozen destinations. In addition to these three new markets, Spirit also recently announced upcoming nonstop service from LAS toย Memphisย andย Salt Lake City.

New & Previously Announced Routes Coming Soon to LAS:ย ย 

Destination:

Flights Available:

Launch Date:

Memphis (MEM)ย 

Daily

April 20, 2022

Salt Lake City (SLC)

Twice Daily

May 26, 2022

Albuquerque (ABQ)NEW

Daily

August 3, 2022

Boise (BOI)ย NEW

Daily

August 5, 2022

Reno (RNO)ย NEW

Twice Daily

August 10, 2022

Spirit Airlines announces additional pilot and flight attendant crew bases in Miami and Atlanta

Spirit Airlines has announced the addition of new Pilot and Flight Attendant bases at Miamiย International Airport (MIA) and Hartsfield-Jackson Atlanta International Airport (ATL) for a total of nine crew bases across the network as the airline continues to add new planes and new airports. The crew bases are projected to initially open this summer once advance preparations are finalized. Spirit expects to locate more than 100 Pilots and more than 200 Flight Attendants at each base initially, with additional crew, supervisors and support functions to follow later in the year.

 

Crew Bases, also known as Home Bases, are the various airport stations where commercial Pilots and Flight Attendants normally begin and end their duty periods.

The new bases will complement Spirit’s existing crew bases in Atlantic City (ACY), Chicago (ORD), Dallas (DFW), Detroit (DTW), Fort Lauderdale (FLL), Las Vegas (LAS) and Orlando (MCO).

Spirit’s presence at MIA started in October 2021 with service to nine destinations and grew to a total of 30 nonstop domestic and international routes in January 2022. Spirit’s big entrance at MIA made it the second largest carrier at the airport. At ATL, Spirit currently ranks as the third largest carrier for number of Guests flown and operates nonstop flights to 19ย destinations.

(PRNewsfoto/Spirit Airlines, Inc.)

 

Spirit Airlines to fly to Monterrey, Mexico

Spirit Airlines has announced two daily nonstop flights from Monterrey International Airport (MTY) to George Bush Intercontinental Airport (IAH) and Austin-Bergstrom International Airport (AUS), starting in June 2022.

Spirit initially entered Mexico in 2003 when its first flight landed at Cancun International Airport (CUN) and continued to invest in the country by adding new stations at Los Cabos International Airport (SJD) in 2012 and Puerto Vallarta International Airport (PVR) in 2021. This new MTY service is an expansion inland in addition to the popular beach destinations, focused on connecting friends and relatives with affordable flights.

Spirit’s Austin service will provide the only nonstop flight between the two cities, providing a critical air link between major cities. In Houston, Spirit’s new Monterrey service complements a robust international network providing Houstonian’s affordable nonstop flights to seven international destinations, along with 17 domestic destinations.

Spirit Airlines Routes from MTY

Destination:

Flights Available:

Launch Date:

Austin, TX (AUS)*

Daily

June 22, 2022

Houston, TX (IAH)*

Daily

June 22, 2022

*Subject to government approval

Spirit will launch nine nonstop routes to Myrtle Beach

Spirit Airlines has announced it will be connecting even more vacationers to the 60 miles of beaches known as the Grand Strand. The airline will launch nine nonstop routes to Myrtle Beach International Airport (MYR) this spring, introducing five new destinations, and resuming service from four other cities.

The seasonal service begins with nonstop routes to Manchester and a resumption of operations to Niagara Falls in April. Next up, routes to Indianapolis, Minneapolis, Houston, Louisville, Milwaukee, and St. Louis will launch ahead of Memorial Day weekend in May. In June, Spirit will connect Myrtle Beach to its newest market, Rochester.

New or Resuming Seasonal Routes
Destination: Flights Available: Launch Date:
Manchester (MHT) NEW Daily April 20, 2022
Niagara Falls (IAG) RESUMING 3-4x weekly April 22, 2022
Indianapolis (IND) RESUMING 4x Weekly May 25, 2022
Minneapolis (MSP) RESUMING 2-3x Weekly May 26, 2022
Houston (IAH) RESUMING 2-3x Weekly May 26, 2022
Louisville (SDF) NEW 2-3x Weekly May 26, 2022
St. Louis (STL) NEW 2-3x Weekly May 26, 2022
Milwaukee (MKE) NEW 2-3x Weekly May 27, 2022
Rochester (ROC) NEW 4x Weekly June 24, 2022

 

Spirit continues to invest in MYR with nearly 30 daily departures during the peak season. This includes markets with multiple flight options such as twice daily service to Baltimore (BWI), Detroit (DTW), Hartford (BDL), New York LaGuardia (LGA), Newark (EWR) and more. Just last year, Spirit celebrated its 25th year serving Myrtle Beach, and we continue to deliver Moreย Go!

Frontier Airlines to buy Spirit Airlines for $6.6 billion

2021 "Spirit Untamed" promotional livery

Frontier Airlines is about to get a lot larger:

Frontier Airlines has agreed to buy Spirit Airlines for $25.83 a share reflecting a cash deal that will be valued at $6.6 billion, including debt.ย 

Spirit equity stockholders will receive 1.9126 shares of Frontier stock plus $2.13 in cash for each Spirit share they own. The transaction represents a 19% premium to Spirit’s closing price on Friday.

Spirit Airlines will be merged into Frontier Airlines.

Frontier Airlines issued this statement:

Spirit Airlines, Inc. and Frontier Group Holdings, Inc., parent company of Frontier Airlines, Inc., today announced a definitive merger agreement under which the companies will combine, creating Americaโ€™s most competitive ultra-low fare airline.

Together, Frontier and Spirit expect to change the industry for the benefit of consumers, bringing more ultra-low fares to more travelers in more destinations across the United States, Latin America and the Caribbean, including major cities as well as underserved communities. The stronger financial profile of the combined company will empower it to accelerate investment in innovation and growth and compete even more aggressively, especially against the dominant โ€œBig Fourโ€1ย airlines, among others.

William A. Franke, the Chair of Frontierโ€™s Board of Directors and the managing partner of Indigo Partners, Frontierโ€™s majority shareholder, noted that Indigo has a long history with both Spirit and Frontier, and is proud to partner with them in creating a disruptive airline. โ€œWe worked jointly with the Board of Directors and senior management team across both carriers to arrive at a combination of two complementary businesses that together will create Americaโ€™s most competitive ultra-low fare airline for the benefit of consumers.โ€

Consumers Win With More Ultra-Low Fares to More Places

The combined airline is expected to:

  • Deliver $1 billion in annual consumer savings.
  • Offer more than 1,000 daily flights to over 145 destinations in 19 countries, across complementary networks.
  • Expand with more than 350 aircraft on order to deliver more ultra-low fares.
  • Increase access to ultra-low fares by adding new routes to underserved communities across the United States, Latin America and the Caribbean.
  • Deliver even more reliable service through a variety of operational efficiencies.
  • Expand frequent flyer and membership offerings.

Team Members Win With Expanded Opportunities and Increased Stability

  • By 2026 Spirit and Frontier expect to add 10,000 direct jobs and thousands of additional jobs at the companiesโ€™ business partners.
  • Given the growth of the combined company, it is expected that all current team members will have an opportunity to be a part of the combined airline.
  • Team Members of the combined airline will have better career opportunities and more stability as part of the most competitive ultra-low fare airline in the United States.

Sustainability Wins With Americaโ€™s Greenest Airline

Frontier and Spirit will be Americaโ€™s Greenest Airline, providing nationwide access to sustainable and affordable air travel. The combined airline will have the youngest, most modern and fuel-efficient fleet in the United States, featuring the largest fleet of A320neo family aircraft of any airline in the country. The combined airline is expected to achieve over 105 seat miles per gallon by 2025.

Shareholders Win With Superior Value Creation

The combination of Spirit and Frontier is expected to deliver enhanced value to shareholders of both companies.

  • On a combined basis, the company would have annual revenues of approximately $5.3 billion based on 2021 results.
  • Once combined, Frontier and Spirit expect to deliver annual run-rate operating synergies of $500 million once full integration is completed, which will be primarily driven by scale efficiencies and procurement savings across the enterprise with approximately $400 million in one-time costs.
  • The combined airline is expected to have a strengthened financial profile, with a cash balance of approximately $2.42ย billion as of the end of 2021 on a combined basis.

Under the terms of the merger agreement, which has been unanimously approved by the boards of directors of both companies, Spirit equity holders will receive 1.9126 shares of Frontier plus $2.13 in cash for each existing Spirit share they own.ย This implies a value of $25.83 per Spirit share at Frontierโ€™s closing stock price of $12.39 on February 4, 2022, representing a premium of 19% over the February 4, 2022, closing price of Spirit, and a 26% premium based on the 30 trading-day volume-weighted average prices of Frontier and Spirit.ย The transaction values Spirit at a fully diluted equity value of $2.9 billion, and a transaction value of $6.6 billion when accounting for the assumption of net debt and operating lease liabilities.

Upon closing of the transaction, existing Frontier equity holders will own approximately 51.5% and existing Spirit equity holders will own approximately 48.5% of the combined airline, on a fully diluted basis, providing both Frontier and Spirit equity holders with substantial upside potential.

Bringing Our Airlines Together โ€“ Governance and Timing to Completion

The Board of Directors for the new airline will be comprised of 12 directors (including the CEO), seven of whom will be named by Frontier and five of whom will be named by Spirit. Mr. Franke will be Chairman of the Board of the combined company.

The merger is expected to close in the second half of 2022, subject to satisfaction of customary closing conditions, including completion of the regulatory review process and approval by Spirit stockholders. Frontierโ€™s controlling stockholder has approved the transaction and related issuance of shares of Frontier common stock upon signing of the merger agreement. The combined companyโ€™s management team, branding and headquarters will be determined by a committee led by Mr. Franke prior to close.

Top Copyright Photo: Spirit Airlines Airbus A320-271N WL N932NK (msn 10008) (Spirit Untamed) BWI (Brian McDonough). Image: 953897.

Frontier Airlines aircraft slide show:

Spirit Airlines aircraft slide show:

 

Spirit Airlines reports fourth quarter and full year 2021 results

Spirit Airlines, Inc. today reported fourth quarter and full year 2021 financial results.

Ended the year 2021 withย $1.7 billionย of unrestricted cash, cash equivalents, short-term investment securities and liquidity available under the Company’s revolving credit facility.

As Reported

(unaudited)

Fourth Quarter 2021

Fourth Quarter 2020

Fourth Quarter 2019

Total Operating Revenues

$987.6 million

$498.5 million

$969.8 million

Pre-tax Income (Loss)

$(91.8) million

$(204.5) million

$106.8 million

Net Income (Loss)

$(87.2) million

$(157.3) million

$81.2 million

Diluted Earnings (Loss) Per Share

$(0.80)

$(1.61)

$1.18

Adjusted1

Fourth Quarter 2021

Fourth Quarter 2020

Fourth Quarter 2019

Adjusted EBITDA

$14.9 million

$(91.1) million

$187.7 million

Adjusted EBITDA Margin

1.5%

(18.3)%

19.4%

Adjusted Pre-tax Income (Loss)

$(90.3) million

$(207.9) million

$108.0 million

Adjusted Net Income (Loss)

$(69.4) million

$(159.5) million

$82.1 million

Adjusted Net Income (Loss) Per Share, Diluted

$(0.64)

$(1.63)

$1.20

“Our fourth quarter 2021 results came in better-than-expected, despite the negative impact from Omicron-related flight disruptions, primarily due to very strong demand over the peak December holiday period. I want to thank the entire Spirit team for their professionalism and commitment to providing excellent service to our Guests,” saidย Ted Christie, Spirit’s President and Chief Executive Officer.

“Looking ahead to the first quarter 2022, we have seen sequential improvement in bookings since mid-January and early trends indicate travel demand in the second half of the first quarter should be quite strong. Also, today we announced that Spirit and Frontier have signed a definitive merger agreement under which we plan to combine to bring more ultra-low fares to more travelers in more destinations acrossย the United States,ย Latin Americaย and theย Caribbean. We are excited about this combination and believe it will have tremendous benefits for consumers, Team Members, and shareholders.”

COVID-19
Since its initial onset in early 2020, the impact of the COVID-19 pandemic has evolved and continues to be fluid. Therefore, the Company’s financial and operational outlook remains subject to change. The Company continues to monitor the impact of the pandemic on its operations and financial condition, and to adjust its mitigation and operational strategies accordingly. Spirit has implemented measures for the safety of its Guests and Team Members as well as to mitigate the impact of COVID-19 on its financial position and operations. Please see the Company’s Annual Report on Form 10-K for the period endingย December 31, 2021ย for additional disclosures regarding these measures.

The Company believes that providing analysis of financial and operational performance compared to fourth quarter 2019 is a more relevant measure of performance due to the severe impacts from the COVID-19 pandemic on our financial results and operational performance for 2020.

Fourth Quarter 2021 Results
Adjusted EBITDA for the fourth quarter 2021 wasย $14.9 million. The Company had an unusual number of operational disruptions and flight cancellations during the peakย December 2021ย holiday period, due to staffing shortages as a result of the rapid spread of the Omicron variant. The irregular operations during the peakย December 2021ย holiday period negatively impacted fourth quarter 2021 Adjusted EBITDA by approximatelyย $30 million, primarily due to additional passenger re-accommodation expenses and higher labor expenses, partially offset by lower fuel expense and landing fees. Despite this impact, Adjusted EBITDA margin for the fourth quarter 2021 was 1.5 percent, better than the Company’s initial expectations of flat to negative 5 percent.

Capacity and Operations
Load factor for the fourth quarter 2021 was 79.8 percent on a 9.5 percent capacity increase versus fourth quarter 2019. Spirit’s fourth quarter 2021 DOT on-time performance2ย was 78.1 percent and its Completion Factor2ย was 97.7 percent.

The Company’s operations stabilized during the first week ofย January 2022ย and for the full month ofย January 2022, the Company’s on-time performance2ย was 73.8% and Completion Factor2ย was 96.5%.

Revenue Performanceย ย 
Total operating revenues for the fourth quarter 2021 came in better than expected atย $987.6 million, an increase of 1.8 percent versus fourth quarter 2019. The irregular operations over the peakย December 2021ย holiday period negatively impacted total operating revenues by approximatelyย $7 million.

On a per passenger flight segment basis, for the fourth quarter 2021 total revenue per passenger flight segment (“Segment”) increased 3.1 percent compared to the same period in 2019 toย $114.15. Fare revenue per Segment increased 0.5 percent toย $52.93ย and Non-ticket revenue per Segment increased 5.5 percent toย $61.223. Investments in enhanced product offerings and improved merchandising as well as the realized benefits from revenue management initiatives continue to drive the improvement in Non-Ticket revenue performance.

Cost Performance
Compared to the fourth quarter 2019, total GAAP operating expenses for the fourth quarter 2021 increased 24.1 percent toย $1,049.1 million. Adjusted operating expenses for the fourth quarter 2021 increased 24.7 percent compared to the fourth quarter 2019 toย $1,047.6 million4. Compared to the fourth quarter 2019, in addition to costs driven by increased flight volume and a greater number of aircraft, these increases were primarily driven by passenger re-accommodation expense incurred as a result of the irregular operations over the peakย December 2021ย holiday period and rate increases related to fuel, labor, and airport rents.

For the fourth quarter 2021, the Company’s adjusted operating expenses came in better than expected as the net costs related to the December irregular operations were more than offset by lower average fuel rates, lower airport costs, and overall effective cost management.

“Our Adjusted EBITDA margin for the fourth quarter 2021 was 1.5 percent, 400 basis points better than the mid-point of our guide on higher revenue and lower costs,” saidย Scott Haralson, Spirit’s Chief Financial Officer. “Over the next year we will leverage opportunities to restore and optimize our network and we will continue to push the horizon on non-ticket production. We will also remain keenly focused on managing costs and finding efficiencies to offset inflationary cost headwinds we face.”

Fleet
Spirit took delivery of five new A320neo aircraft during the fourth quarter 2021. The Company ended the year with 173 aircraft in its fleet.

Liquidity and Capital Deployment
Spirit ended fourth quarter 2021 with unrestricted cash, cash equivalents, short-term investment securities and liquidity available under the Company’s revolving credit facility ofย $1.7 billion.

Total capital expenditures for the twelve months endedย December 31, 2021ย wereย $333.1 million, primarily related to pre-delivery deposits associated with future aircraft deliveries and the purchase of four aircraft and two engines off lease, and twoย spare engines purchased with cash. In addition, one of the three aircraft delivered under sale-leaseback transactions during the fourth quarter 2021 did not qualify to be accounted for as a sale-leaseback; therefore, it is being accounted for as an aircraft financed through fixed-rate long-term debt. The net purchase price of this aircraft was recorded within capital expenditures in the fourth quarter 2021.

Spirit Airlines is coming to Salt Lake City

Spirit Airlines made this announcement:

Spirit Airlines will soar above the scenic vistas of Utahย for the first time this spring. The airline today announced its new service toย Salt Lake Cityย International Airport (SLC), offering travelers daily, nonstop routes toย Las Vegasย (LAS),ย Los Angelesย (LAX), andย Orlandoย (MCO). The new service marks the first time Spirit will serve the state ofย Utah, which boasts world-class outdoor recreation, spectacular landscapes and numerous options to experience the arts.

Spirit will be the first new domestic airline to announce operations following the 2020 unveiling of The New SLC, aย $4.5 billionย airport rebuild project that provides an enhanced experience for Guests. The airline’s presence at SLC increases competition and benefits local families seeking more options for affordable getaways.

Spirit Airlines Routes at SLC:ย ย 

Destination:

Flights Available:

Launch Date:

Las Vegas (LAS)

Twice Daily

May 26, 2022

Los Angeles (LAX)

Daily

May 26, 2022

Orlando (MCO)

Daily

May 26, 2022

Spirit’s newย Salt Lake Cityย service adds to the airline’s continued network expansion. Recently, Spirit launched service inย Tegucigalpa, Hondurasย (XPL),ย Manchester, New Hampshireย (MHT), andย Miami, Floridaย (MIA) – fulfilling its commitment to giving Guests options to get Moreย Go.ย Salt Lake Cityย is Spirit’s first new service announcement of 2022.

Spirit Airlines to double flight attendant pay through January 4

From CNN:

Spirit Airlines flight attendants are receiving double pay on any work through January 4, 2022 their union said, as the budget carrier scrambles to keep its schedules intact after U.S. airlines were hammered by a week of mass cancellations according to CNN.

More from CNN:

https://www.cnn.com/2021/12/31/business/spirit-airlines-flight-attendant-pay-covid/index.html