Tag Archives: Spirit Airlines

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:

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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:

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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:

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Spirit Airlines adds new routes from Raleigh/Durham

Spirit Airlines Airbus A319-132 N512NK (msn 2673) LAX (Michael B. Ing). Image: 945308.

Spirit Airlines has announced new service to and from Raleigh/Durham.

Beginning May 2, 2019, Spirit will launch nonstop daily service from Raleigh-Durham International Airport (RDU) to Baltimore/Washington, Boston, Chicago, Detroit, Fort Lauderdale/Hollywood, New Orleans, and Orlando.

Raleigh-Durham, NC (RDU) to/from: Starts: Frequency:
Baltimore, MD/Washington, DC (BWI) May 2, 2019 2x daily, year-round
Boston, MA (BOS) May 2, 2019 Daily, year-round
Chicago, IL (ORD) May 2, 2019 Daily, year-round
Detroit, MI (DTW) May 2, 2019 Daily, year-round
Orlando, FL (MCO) May 2, 2019 Daily, year-round
Fort Lauderdale, FL (FLL) May 2, 2019 Daily, year-round
New Orleans, LA (MSY) May 2, 2019 Daily, year-round

Along with the new service to and from Raleigh-Durham, Spirit is also announcing two additional routes set to roll-out at the same time.  Starting May 2, Spirit will begin daily nonstop seasonal service between Atlanta and Denver.  Then on May 23, the airline will launch daily nonstop service between Philadelphia and San Juan, Puerto Rico.  These additional routes will only strengthen Spirit’s domestic and Caribbean service.

Route: Starts: Frequency:
Atlanta, GA (ATL) – Denver, CO (DEN) May 2, 2019 Daily, seasonal
(Runs 5/2/19 – 9/4/19)
Philadelphia, PA (PHL) – San Juan, PR (SJU) May 23, 2019 Daily, year-round

It also comes after Spirit announced it would begin serving Austin, Texas and Indianapolis, Indiana in early 2019, and is adding more nonstop flights from Jacksonville, Florida; Myrtle Beach, South Carolina; New Orleans, Louisiana; and San Juan, Puerto Rico.  The airline is also in the process of installing state-of-the-art high-speed satellite-based Wi-Fi to its entire fleet.

Top Copyright Photo (all others by the airline): Spirit is removing “Home of the Bare Fare” from its 2014 yellow livery. Spirit Airlines Airbus A319-132 N512NK (msn 2673) LAX (Michael B. Ing). Image: 945308.

Spirit Airlines aircraft slide show:

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Spirit Airlines grows its network into Indianapolis

Spirit Airlines Airbus A321-231 WL N669NK  (msn 7296) LAX (Michael B. Ing). Image: 943096.

Spirit Airlines is coming to Indianapolis. Beginning on March 14, 2019, Spirit will begin nonstop daily service from Indianapolis International Airport (IND) to Orlando International Airport (MCO) and McCarran International Airport (LAS) in Las Vegas.   Just about two months later, on May 2, 2019 Spirit will add nonstop seasonal flights between Indianapolis and Myrtle Beach International Airport (MYR) three times weekly.

 

Indianapolis, IN (IND) Starts: Frequency:
Orlando, FL (MCO) March 14, 2019 Daily, year-round
Las Vegas, NV (LAS) March 14, 2019 Daily, year-round
Myrtle Beach, SC (MYR) May 2, 2019 3x weekly, seasonal

This latest expansion announcement comes just weeks after Spirit announced it would be launching service in Austin, Texas (below), Cali, Colombia, and expanding its Caribbean service throughout its network.  The airline is also in the process of installing state-of-the-art high-speed satellite-based Wi-Fi to its entire fleet.

Top Copyright Photo: Spirit Airlines Airbus A321-231 WL N669NK (msn 7296) LAX (Michael B. Ing). Image: 943096.

Spirit Airlines aircraft slide show:

Route Map:

 

Spirit Airlines is coming to Austin, Texas, more flights to San Juan

Spirit Airlines Airbus A321-231 WL N670NK  (msn 7106) BWI (Ron Monroe). Image: 943770.

Spirit Airlines is starting service to Austin, Texas.

Beginning on February 14, 2019, Spirit will launch nonstop service from Austin-Bergstrom International Airport (AUS) to nine cities across the United States.  Spirit will offer nonstop service between the ATX and Baltimore/Washington, DC, Chicago, Denver, Detroit, Fort Lauderdale, Las Vegas, New Orleans and Orlando.  Just a few months later, on May 2, Spirit will add nonstop service between Austin and Los Angeles. Austin will mark Spirit’s 70th destination in its growing network, and the new service will generate approximately 50 new jobs.

Austin (AUS) to/from: Starts: Frequency:
Baltimore, MD/Washington, DC (BWI) February 14, 2019 Daily
Chicago, IL (ORD) February 14, 2019 Daily
Denver, CO (DEN) February 14, 2019 Daily
Detroit, MI (DTW) February 14, 2019 Daily
Fort Lauderdale, FL (FLL) February 14, 2019 Daily
Las Vegas, NV (LAS) February 14, 2019 Daily
Orlando, FL (MCO) February 14, 2019 Daily
New Orleans, LA (MSY) February 14, 2019 Daily
Los Angeles, CA (LAX) May 2, 2019 Daily

Austin will join Houston and Dallas as the third destination for Spirit in the Lone Star State.  It comes just weeks after the airline announced it would be starting service in Jacksonville, Florida and Cali, Colombia, along with expanding significantly in Orlando, Florida and San Juan, Puerto Rico.

Above Photo: New Orleans Airport.

In other news, the airline will add new routes to historic San Juan, Puerto Rico.

Beginning February 14, 2019, Spirit will begin daily nonstop service to Luis Muñoz Marin International Airport (SJU) from Tampa International Airport(TPA) and Baltimore-Washington International Airport (BWI).

San Juan, PR to/from Starts: Frequency:
Baltimore/Washington, DC (BWI) February 14, 2019 Daily
Tampa, Fla. (TPA) February 14, 2019 Daily
Fort Lauderdale, Fla. (FLL) Existing service Daily
Orlando, Fla. (MCO) Existing service Daily
Aguadilla, PR to/from
Fort Lauderdale, Fla. (FLL) Existing service Daily
Orlando, Fla. (MCO) Existing service Daily

The new route between Tampa and San Juan will join the resumption of nonstop seasonal flights starting in November between Tampa and Akron-Canton, Boston, Cleveland, Hartford, Latrobe, Minneapolis and Pittsburgh.

Top Copyright Photo: Spirit Airlines Airbus A321-231 WL N670NK (msn 7106) BWI (Ron Monroe). Image: 943770.

Spirit Airlines aircraft slide show:

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