Tag Archives: Spirit Airlines

Spirit Airlines reports second quarter 2019 results

No Longer with "Home of the Bare Fare" on engines

Spirit Airlines, Inc. has reported its second quarter 2019 financial results.

Second Quarter 2019 Second Quarter 2018
As Reported Adjusted As Reported Adjusted
(GAAP) (non-GAAP)1 (GAAP) (non-GAAP)1
Revenue $1,013.0 million $1,013.0 million $851.8 million $851.8 million
Operating Income (loss) $163.9 million $165.5 million $108.5 million $113.3 million
Operating Margin  16.2%  16.3%  12.7%  13.3%
Net Income (loss) $114.5 million $115.7 million $11.3 million $75.7 million
Diluted EPS $1.67 $1.69 $0.16 $1.11

“Our team once again delivered strong quarterly profits.  In the second quarter 2019, we improved our operating margin by 300 basis points and delivered very strong earnings growth.” said Ted Christie, Spirit’s President and Chief Executive Officer.  “Operationally, we experienced numerous storm systems across our network which negatively impacted our operational reliability.  However, on a relative basis, year-to-date through June 30, 2019 we still rank among the best in the industry for on-time performance2.  I want to thank the entire Spirit team for all that they do every day to care for our Guests, especially during this busy travel season under challenging operational conditions.”

Revenue Performance
For the second quarter 2019, Spirit’s total operating revenue was $1,013.0 million, an increase of 18.9 percent compared to the second quarter 2018, driven by an 18.4 percent increase in flight volume and increases in both yields and load factor.

Total operating revenue per available seat mile (“TRASM”) for the second quarter 2019 increased 5.0 percent compared to the same period last year.  During the second quarter 2019, the Company’s results benefited from its strategic network changes, revenue management initiatives, and a strong underlying demand environment.  In addition, the Company estimates the calendar shift of Easter from the first quarter in 2018 to the second quarter in 2019 contributed approximately 200 basis points to the TRASM improvement.

Non-ticket revenue per passenger flight segment for the second quarter 2019 increased 1.8 percent to $55.543.   Fare revenue per passenger flight segment decreased 1.0 percent to $57.60 and total revenue per passenger segment increased 0.3 percent year over year to $113.14.

Cost Performance
For the second quarter 2019, total GAAP operating expenses increased 14.2 percent year over year to $849.0 million.  Adjusted operating expenses for the second quarter 2019 increased 14.8 percent year over year to $847.5 million4.  These changes were primarily driven by higher flight volume, higher passenger re-accommodation expense, higher salaries, wages and benefits, and airport rent and landing fees.

Aircraft fuel expense increased in the second quarter 2019 by 7.6 percent year over year, due to a 15.4 percent increase in fuel gallons consumed.

Spirit reported second quarter 2019 cost per available seat mile (“ASM”), excluding operating special items and fuel (“Adjusted CASM ex-fuel”), of 5.41 cents4, up 4.6 percent compared to the same period last year.  As previously disclosed, a severe storm system impacted a large majority of Spirit’s flights to and from Florida during the Easter holiday weekend.  As a result, the Company canceled numerous flights and incurred costs of about $6 million for passenger re-accommodation and disrupted crew expense.  The additional expense and loss of ASMs related to this storm contributed approximately 150 basis points to adjusted CASM ex-fuel year over year percent change for the second quarter 2019.  In addition to the Easter storm, the Company experienced multiple storm-related flight disruptions throughout the rest of the quarter which drove additional passenger re-accommodation expense.  Higher ground handling rates, amortization expense, and other items contributed to the adjusted CASM ex-fuel change year over year.

Liquidity
Spirit ended the second quarter 2019 with unrestricted cash, cash equivalents, and short-term investments of $1.2 billion.  For the six months ended June 30, 2019, Spirit generated $341.0 million of operating cash flow, after investing $238.5 million, primarily for aircraft purchases and pre-delivery deposits.  Adjusted for proceeds from issuance of long-term debt, operating cash flow for the quarter ended June 30, 2019 was $205.2 million5.  For the six months ended June 30, 2019, net cash provided by financing activities was $3.5 million.

Fleet
Spirit took delivery of two new aircraft (one A320ceo and one A320neo) during the second quarter 2019, ending the quarter with 135 aircraft in its fleet.

End Notes
(1) See “Reconciliation of Adjusted Net Income, Adjusted Pre-tax Income, and Adjusted Operating    Income to GAAP Net Income” table below for more details.
(2) Preliminary data using DOT A:14 methodology.
(3) See “Calculation of Total Non-Ticket Revenue per Passenger Segment” table below for more details.
(4) See “Reconciliation of Adjusted Operating Expense to GAAP Operating Expense” table below for   more details.
(5) See “Reconciliation of Adjusted Free Cash Flow to GAAP Net Operating Cash Flow” table below for more details.

See more

Top Copyright Photo: Spirit Airlines Airbus A319-132 N512NK (msn 2673) LAX (Michael B. Ing). Image: 944944.

Spirit aircraft slide show:

x

Advertisements

Spirit Airlines launches two new California cities with service to Las Vegas, adds routes from Charlotte

Spirit Airlines Airbus A319-132 N516NK (msn 2704) LAX (Michael B. Ing). Image: 945347.

Spirit Airlines, the fastest growing airline in Las Vegas, continues its investment in the Entertainment Capital of the World with the addition of two new cities to the Spirit network: Burbank and Sacramento.

On June 20, Spirit launched nonstop flights between McCarran International Airport (LAS) in Las Vegas and Hollywood Burbank Airport (BUR) and Sacramento International Airport (SMF), each running three times daily.  Spirit will now have 55 daily departures from Las Vegas to 29 different destinations.

Routes from LAS (nonstop in black):

In partnership with McCarran International Airport, Spirit Airlines also debuted the airport’s first automated self-service bag drop system.  Located in the ticketing concourse of Terminal 1, it allows Guests to expedite their check-in experience by paying for and tagging their own bags on the airport’s kiosks. Travelers then proceed directly to newly installed automated bag belts to present their identification and drop their bags.  Automated self-service bag drop systems, widely adopted in Europe, highlight the airport and airline’s shared vision of allowing more Guests to customize and control their travel experience.

In addition to Sacramento and Burbank, Spirit will soon be adding Nashville to its network, which will include nonstop service to and from Las Vegas.  As of July 2019, Spirit will have grown nearly 50 percent in Las Vegas compared to its capacity only two years earlier.  The airline now employs more than 1,000 people in Las Vegas, and Spirit’s rapid expansion has created nearly 300 additional jobs in the last two years.

In other news, Spirit Airlines is kicking off service to Charlotte, North Carolina. Beginning on June 20, Spirit now offers nonstop daily flights from Charlotte Douglas International Airport (CLT) to Baltimore/Washington, Fort Lauderdale/Hollywood, Orlando and Newark.

Charlotte marks Spirit’s fourth destination in the Tar Heel State, joining the Piedmont Triad, Asheville, and Raleigh-Durham. These North Carolina additions to Spirit’s network have resulted in hundreds of new jobs in the state, while adding additional options to stimulate North Carolina tourism. By summer 2019, Spirit will have more than fifteen daily departures across the state.

Charlotte (CLT) to/from: Starts: Frequency:
Baltimore, MD/Washington, DC (BWI) June 20, 2019 Daily
Fort Lauderdale, FL (FLL) June 20, 2019 Daily
Orlando, FL (MCO) June 20, 2019 Daily
Newark, NJ (EWR) June 20, 2019 Daily

Top Copyright Photo (all others by the airline): Spirit Airlines Airbus A319-132 N516NK (msn 2704) LAX (Michael B. Ing). Image: 945347.

Spirit Airlines aircraft slide show:

Spirit Airlines is coming to Nashville

Airline Color Scheme - Introduced 2018 (revised titles)

Spirit Airlines is coming to Nashville, Tennessee. Beginning October 10, 2019.

Spirit will begin nonstop daily service from Nashville International Airport (BNA) to Baltimore/Washington, Fort Lauderdale/Hollywood, New Orleans, Las Vegas and Orlando.

The airline will also add nonstop service to Tampa on November 5. The six routes will operate year-round and create dozens of connections to some of Spirit’s most popular destinations, throughout the U.S., Caribbean and Latin America.

Nashville, TN (BNA) to/from:  Starts: Frequency:
Baltimore, MD/Washington, DC (BWI) October 10, 2019 Daily, year-round
Fort Lauderdale, FL (FLL) October 10, 2019 Daily, year-round
New Orleans, LA (MSY) October 10, 2019 Daily, year-round
Las Vegas, NV (LAS) October 10, 2019 Daily, year-round
Orlando, FL (MCO) October 10, 2019 Daily, year-round
Tampa, FL (TPA) November 5, 2019 Daily, year-round

The announcement will add to Spirit’s growing network, as the carrier recently announced it would be launching service in Burbank, Sacramento, and Charlotte on June 20.

Top Copyright Photo: Spirit Airlines Airbus A320-232 WL N618NK (msn 5458) LAX (Michael B. Ing). Image: 945345.

Spirit Airlines aircraft slide show:

Spirit Airlines reports its first quarter 2019 results

Spirit Airlines Airbus A321-231 WL N661NK  (msn 6887) LAX (Michael B. Ing). Image: 946286.

Spirit Airlines, Inc. today reported first quarter 2019 financial results.

First Quarter 2019 First Quarter 2018
As Reported Adjusted As Reported Adjusted
(GAAP) (non-GAAP)1 (GAAP) (non-GAAP)1
Revenue $855.8 million $855.8 million $704.1 million $704.1 million
Operating Income (loss) $87.8 million $89.7 million $(38.8) million $51.2 million
Operating Margin 10.3% 10.5% (5.5)% 7.3%
Net Income (loss) $56.1 million $57.5 million $(44.9) million $29.9 million
Diluted EPS $0.82 $0.84 $(0.66) $0.44

“Solid execution of our revenue initiatives and strong underlying demand trends drove adjusted diluted earnings per share growth of over 90 percent1 for the first quarter 2019 compared to the first quarter last year.  On capacity growth of 16.9 percent year over year, for the first quarter 2019, the team delivered a total revenue per available seat mile increase of 4.1 percent driven by improvements in both ticket and non-ticket yields.  We also ran a great operation during the quarter, improving our completion factor by 70 basis points to 98.9 percent despite more weather disruptions than the year prior and delivering an on-time performance of 82.6 percent2, which was among the best in the industry,” said Ted Christie, Spirit’s President and Chief Executive Officer.

Revenue Performance
For the first quarter 2019, Spirit’s total operating revenue was $855.8 million, an increase of 21.5 percent compared to the first quarter 2018, driven by a 16.0 percent increase in flight volume and increases in both passenger yields and load factor.

Total operating revenue per available seat mile (“TRASM”) for the first quarter 2019 increased 4.1 percent compared to the same period last year.  During the first quarter 2019, the Company’s results continued to benefit from its ticket and non-ticket revenue initiatives.

On a per passenger flight segment basis, total revenue for the first quarter 2019 increased 1.6 percent year over year to $109.44 with fare revenue per passenger flight segment increasing 1.6 percent to $53.24 and non-ticket revenue per passenger flight segment increasing 1.6 percent to $56.203.  The improvement in non-ticket revenue per passenger segment year over year was largely driven by dynamic pricing initiatives and improved take rates of bundled service offerings.

Cost Performance
For the first quarter 2019, total GAAP operating expenses increased 3.4 percent year over year to $768.0 million.  Adjusted operating expenses for the first quarter 2019 increased 17.3 percent year over year to $766.1 million4.  Drivers of the increase in adjusted operating expense compared to the first quarter last year include higher flight volume, contracted pilot rate increases, airport rent and landing fee escalations, and higher depreciation expense.  On a GAAP basis, these increases were largely offset by lower special charges year over year.

Aircraft fuel expense increased in the first quarter 2019 by 12.2 percent year over year, due to a 15.6 percent increase in fuel gallons consumed.

Spirit reported first quarter 2019 cost per available seat mile (“ASM”), excluding special items and fuel (“Adjusted CASM ex-fuel”), of 5.46 cents4, an increase of 2.4 percent compared to the same period last year, primarily due to higher salaries, wages and benefits per ASM, largely driven by contracted rate increases pilots received effective March 1, 2018.  This increase was partially offset by lower aircraft rent per ASM and better operational performance.

“Strong revenue performance coupled with solid cost control helped produce a 320 basis point improvement in our adjusted operating margin for the first quarter 2019,” said Scott Haralson, Spirit’s Chief Financial Officer.  “We are continuing to capture the benefits of the hard work and dedication by all our team members to profitably grow our business, improve our brand image, execute on our plan to drive revenue improvement, and maintain an industry-leading cost position.  We are committed to keeping this momentum going and delivering strong returns for our shareholders.”

Liquidity
Spirit ended the first quarter 2019 with unrestricted cash, cash equivalents, and short-term investments of $1.2 billion.  Spirit generated $205.2 million of operating cash flow and ended first quarter 2019 with adjusted free cash flow of $163.8 million5.

Fleet
Spirit took delivery of five new aircraft (one A320ceo and four A320neo) during the first quarter 2019, ending the quarter with 133 aircraft in its fleet.

Network
During the quarter, Spirit continued its goal to broaden and diversify its network with new service from Austin and Indianapolis primarily to large leisure destinations.  Spirit also added new service between existing destinations, bringing its operation to over 600 daily flights to 75 destinations in the U.S., Latin America, and the Caribbean.

Route Map:

End Notes
(1)  See “Reconciliation of Adjusted Net Income, Adjusted Pre-tax Income, and Adjusted Operating Income to GAAP Net Income” table below for more details.
(2)  Preliminary data using DOT A:14 methodology.
(3)  See “Calculation of Total Non-ticket Revenue per Passenger Segment” table below for more details.
(4)  See “Reconciliation of Adjusted Operating Expense to GAAP Operating Expense” table below for   more details.
(5)  See “Reconciliation of Adjusted Free Cash Flow to GAAP Net Operating Cash Flow” table below for more details.

Top Copyright Photo (all others by the airline): Spirit Airlines Airbus A321-231 WL N661NK (msn 6887) LAX (Michael B. Ing). Image: 946286.

Spirit Airlines aircraft slide show:

Spirit Airlines expands in California and Las Vegas

Spirit Airlines Airbus A320-232 WL N626NK (msn 5999) FLL (Bruce Drum). Image: 104929.

Spirit Airlines has announced it will soon serve its fifth destination in California, Sacramento.

Beginning June 20, 2019, Spirit Airlines will begin nonstop service from Sacramento International Airport (SMF) to McCarran International Airport (LAS) in Las Vegas.  The three daily flights will not only offer convenient service to the “Entertainment Capital of the World,” but will also provide dozens of connections to other Spirit destinations, including Columbus, Pittsburgh, Indianapolis, Fort Lauderdale/Hollywood, Tampa, Baltimore/Washington, New Orleans, and Philadelphia.

The announcement comes just a day after Spirit announced it would begin serving Hollywood-Burbank Airport (BUR) on the same date, June 20.  The airline currently operates at three California airports, San Diego International Airport (SAN), Oakland International Airport (OAK), and Los Angeles International Airport (LAX).

The announcement will add to Spirit’s growing number of destinations from Las Vegas, a growth city and crew base for the airline.  Spirit now averages approximately 55 daily departures from Las Vegas offering nonstop flights to 28 cities.  As of July 2019, Spirit will have grown nearly 50 percent in Las Vegas compared to its capacity two years earlier and, in 2018, became the fastest growing carrier there.

Spirit also recently announced it would be launching service in Charlotte, Raleigh-Durham, and Indianapolis, as well as expanding service in Jamaica, Denver and Puerto Rico.  The airline is focused on investing in the Guest experience and delivering the best value in the sky, including the addition of high-speed Wi-Fi to its entire fleet.

Top Copyright Photo: Spirit Airlines Airbus A320-232 WL N626NK (msn 5999) FLL (Bruce Drum). Image: 104929.

Spirit Airlines aircraft slide show:

x

Spirit Airlines introduces an Airbus A321 “Disney Dumbo” logo jet

Spirit Airlines has painted its Airbus A321-231 N662NK (msn 6897) in a promotional “Disney Dumbo” livery.

Spirit Airlines made this short announcement on social media:

Keep an eye out on the sky, as we are excited to bring the magic of Disney’s Dumbo to one of our Spirit planes. This special addition to our fleet is another opportunity to surprise and delight our valued Guests and showcase our fun and friendly service. Don’t miss it, and make sure you catch Dumbo in theaters on March 29!

The company also issued this press release and photo:

Spirit Airlines on March 6 unveiled its specially-themed Airbus A321 that features a larger-than-life image of the beloved Disney character Dumbo. The airline known for inspiring its Guests to take to the skies, is teaming up with Disney to celebrate the upcoming release of its live-action movie “Dumbo,” director Tim Burton’s all-new take on the classic story where differences are celebrated, family is cherished, and dreams take flight. Dedicated to everyone’s favorite flying elephant known for inspiring many to soar to new heights, Spirit and Disney revealed the new plane with a time-lapse video of the decal wrapping process which took place at Spirit’s state-of-the-art Detroit maintenance hangar.

Video:

All other photos by Orlando International Airport.

Spirit Airlines is coming to Charlotte

Spirit Airlines Airbus A319-132 N516NK (msn 2704) LAX (Michael B. Ing). Image: 945346.

Spirit Airlines has announced it will soon serve its fourth destination in the Tar Heel State, Charlotte!

Beginning June 20, 2019, Spirit will begin nonstop daily service from Charlotte Douglas International Airport (CLT) to Baltimore/Washington, Fort Lauderdale/Hollywood, Orlando and Newark.

The carrier currently serves Asheville and Greensboro and will begin serving Raleigh-Durham on May 2.

Charlotte (CLT) to/from: Starts: Frequency:
Baltimore, MD/Washington, DC (BWI) June 20, 2019 Daily
Fort Lauderdale, FL (FLL) June 20, 2019 Daily
Orlando, FL (MCO) June 20, 2019 Daily
Newark, NJ (EWR) June 20, 2019 Daily

In addition to Charlotte, Spirit recently announced it would begin serving Raleigh-Durham, Indianapolis, and Austin as well as expanding service in Jamaica and Puerto Rico.

Top Copyright Photo (all other images by the airline) (Spirit has revised its livery again with revised titles: Spirit Airlines Airbus A319-132 N516NK (msn 2704) LAX (Michael B. Ing). Image: 945346.

Spirit Airlines aircraft slide show:

x