Tag Archives: Spirit Airlines

Spirit Airlines loses $287.9 million in the second quarter, will fly to Tegucigalpa

Spirit Airlines, Inc. today reported second quarter 2021 financial results.

Ended the second quarter 2021 with $2.2 billion of unrestricted cash, cash equivalents, short-term investment securities and liquidity available under the Company’s revolving credit facility

As Reported

Second Quarter 2021    

Second Quarter 2020

Second Quarter 2019

Total Operating Revenues

$859.3 million

$138.5 million

$1,013.0 million

Pre-tax Income (Loss)

$(273.3) million

$(212.5) million

$148.6 Million

Net Income (Loss)

$(287.9) million

$(144.4) million

$114.5 million

Diluted Earnings (Loss) Per Share

$(2.73)

$(1.81)

$1.67

Adjusted1 Second

Second Quarter 2021

Quarter 2020

Second Quarter 2019

Adjusted EBITDA

$62.1 million

$(273.2) million

$220.4 million

Adjusted EBITDA Margin

7.2%

(197.2)%

21.8%

Adjusted Pre-tax Income (Loss)

$(44.7) million

$(364.4) million

$150.1 million

Adjusted Net Income (Loss)

$(36.3) million

$(285.8) million

$115.7 million

Adjusted Net Income (Loss) Per Share, Diluted

$(0.34)

$(3.59)

$1.69

“I thank our Team Members for their outstanding efforts as we work toward bringing our level of operations up to full utilization. In June 2021, we recorded our first month with adjusted net earnings since the onset of the COVID-19 pandemic. Due to our strategic execution and improving demand backdrop, our second quarter 2021 financial results were among the best in the industry,” said Ted Christie, Spirit’s President and Chief Executive Officer. “We remain very well-positioned to stimulate markets and capture the significant market opportunities in the domestic U.S. and near-field international marketplace.”

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 Quarterly Report on Form 10-Q for the period ending June 30, 2021 for additional disclosures regarding these measures.

The Company believes that providing analysis of financial and operational performance compared to second 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.

Capacity and Operations
Load factor for the second quarter 2021 was 84.4 percent, down 0.6 percentage points compared to the second quarter 2019. Capacity for the second quarter 2021 was down 5.1 percent compared to the second quarter 2019.

During the second quarter 2021, numerous weather systems impacted the Company’s network. Despite the adverse weather conditions, Spirit maintained its strong operational reliability and achieved a DOT on-time performance2 of 78.3 percent and a Completion Factor2 of 99.3 percent.

Revenue Performance
Total operating revenues for the second quarter 2021 were $859.3 million, a decrease of 15.2 percent versus second quarter 2019. Although load factors for the second quarter 2021 were in line with pre- pandemic levels, total operating yields were down 10.0 percent compared to the second quarter 2019. However, demand trends in Spirit’s domestic and international markets saw marked improvement as the second quarter 2021 progressed such that June 2021 operating yields were about flat compared to June 2019. Compared to the first quarter 2021, improvement in operating yields helped to drive an 86.3 percent sequential improvement in total revenues relative to only a 28 percent increase in capacity.

For the second quarter 2021, total revenue per passenger flight segment (“Segment”) decreased 9.4 percent compared to the same period in 2019 to $102.48. Fare revenue per Segment decreased 23.5 percent compared to the second quarter 2019 to $44.09. The Company continues to drive improvements in non-ticket revenue per Segment. Non-ticket revenue per Segment increased $2.85 compared to the second quarter 2019 to $58.393. Enhanced product offerings, improved merchandising and realized benefits from revenue management contributed to these results.

Cost Performance
For the second quarter 2021, total GAAP operating expenses decreased 9.8 percent compared to the second quarter 2019 to $766.1 million, primarily due to the grant component of the funding received through the payroll support program (further discussed below). Adjusted operating expenses for the second quarter 2021 increased 2.6 percent compared to the second quarter 2019 to $869.2 million4. Excluding fuel, adjusted operating expenses came in better than expected primarily due to a) strong operational performance resulting in better crew utilization and less passenger disruption expense; b) airport use fees increasing at a slightly slower rate than initially assumed as the industry returned capacity to the marketplace; and c) timing of events. Compared to the second quarter 2019, adjusted operating expenses excluding fuel increased 12.3 percent4, driven primarily by higher salaries, wages and benefits, higher depreciation and amortization, and higher landing fees and other rents. Compared to the second quarter 2019 the increase in salaries, wages and benefits was primarily driven by a 24 percent increase in the number of pilots, a 14 percent increase in the number of flight attendants, and inflationary rate pressures. Higher depreciation and amortization expense compared to the second quarter 2019 was driven by the purchase of additional aircraft and the amortization of heavy maintenance events. Additionally, the increase in landing fees and other rents was due to higher average rates, driven by inflationary pressures as well as increased market share at certain airports where other airlines have decreased flying due to the impact of COVID-19 on demand.

“I want to thank our team members for taking care of our Guests by running a great airline this quarter. As we have begun to ramp the airline for growth, our team has once again proven to be up to the challenge. With our strategic deployment of assets, an improving demand environment and our strong operational results, we were one of the few airlines to produce positive adjusted EBITDA in the second quarter. We continue to be emboldened by the value of the ultra-low-cost model, our valuable network, and our strong operational performance,” said Scott Haralson, Spirit’s Chief Financial Officer. “These pillars create a strong platform for us to continue to drive sustainable, long-term value for our shareholders.”

The arrival of N944NK:

Fleet
Spirit took delivery of five new A320neo aircraft during the second quarter 2021, three of which were financed through direct operating leases, and two under sale lease back transactions. In addition, the Company purchased two A319ceo aircraft off lease. The Company ended the quarter with 164 aircraft in its fleet.

Liquidity and Capital Deployment
Spirit ended second quarter 2021 with unrestricted cash, cash equivalents, short-term investment securities and liquidity available under the Company’s revolving credit facility of $2.2 billion.

Total capital expenditures for the second quarter 2021 were approximately $168 million, primarily related to pre-delivery deposits associated with future aircraft deliveries and the purchase of two A319 aircraft off lease.

To improve its liquidity and financial position, during the second quarter 2021, the Company entered into a series of liability management transactions given the favorable market dynamics:

  • The Company completed a registered direct placement of 10,594,073 shares of its common stock to holders of its 4.75% Convertible Senior Notes due 2025 (the “2025 Convertible Notes”) at a price of $35.05 per share for aggregate net proceeds of $370.8 million. Spirit used $368.7 million of the net proceeds from the offering to redeem $340.0 million aggregate principal amount of its $850.0 million of 8.00% Senior Secured Notes due 2025 (“8.00% Senior Secured Notes”), at a premium of $27.2 million plus accrued and unpaid interest of $1.5 million. As a result, $510.0 million in 8.00% Senior Secured Notes remain outstanding. In connection with this debt extinguishment, the Company recorded $36.4 million within loss on extinguishment of debt on its condensed consolidated statement of operations in second quarter 2021. This amount includes the $27.2 million in premiums paid to early extinguish the debt, $6.1 million for the write-off of related deferred financing costs and $3.1 million for the write-off of the related original issuance discount.
  • The Company issued $500.0 million aggregate principal amount of 1.00% Convertible Senior Notes due 2026 (the “2026 Convertible Notes”) for aggregate net proceeds of $486.8 million. Net proceeds from this transaction were used to repurchase $146.8 million aggregate principal amount of the 2025 Convertible Notes, for a premium of $290.7 million plus accrued and unpaid interest of $3.2 million. As a result, $28.2 million aggregate principal amount of the 2025 Convertible Notes remain outstanding. In connection with this debt extinguishment, the Company recorded $295.2 million within loss of extinguishment of debt on its condensed consolidated statement of operations in second quarter 2021. This amount includes the $290.7 million in premiums paid to early extinguish the debt and $4.5 million for the write-off of related deferred financing costs.
  • Additionally, the Company repaid all outstanding indebtedness under its Senior Secured Revolving Credit Facility (the “Revolver”) due March 2024. As of June 30, 2021, the Company had no outstanding indebtedness under its Revolver which has a total of $240 million in available capacity.

As previously disclosed, as part of the extension of the payroll support program (the “PSP3”) under Title VII, Subtitle C of The American Rescue Plan of 2021, on April 29, 2021, Spirit entered into a new payroll support program agreement with the United States Department of the Treasury (“Treasury”), pursuant to which the Company received a total of $197.9 million to be used exclusively to pay for salaries, wages and benefits for the Company’s Team Members through September 30, 2021. Of that amount, $29.4 million is in the form of a low-interest 10-year loan. In connection with the Company’s participation in the PSP3, on June 3, 2021, the Company issued a warrant to the U.S. Treasury to purchase up to 80,539 shares of the Company’s common stock, (the “Warrant”), in a private placement exempt from the registration requirements of the Securities Act of 1933, as amended. The Warrant may be exercised at an exercise price of $36.45 at any time prior to the fifth anniversary of its issuance. The remaining amount of $167.0 million, net of related costs, is in the form of a grant of which $80.6 million was recognized in special credits in the Company’s condensed consolidated statement of operations and $86.4 million remains within deferred salaries, wages and benefits in the Company’s consolidated condensed balance sheet as of June 30, 2021. Total warrants issued in connection with the PSP, PSP2 and PSP3 represent less than 1.0 percent of the outstanding shares of the Company’s common stock as of June 30, 2021. In addition, on April 29, 2021, the Company received an additional $27.7 million pursuant to the PSP2 program.

Tax Rate
On a GAAP basis, the Company’s effective tax rate for the second quarter 2021 was (5.3) percent, materially lower than the Company’s historic average GAAP tax rate. This lower-than-usual GAAP tax rate was primarily driven by an unfavorable permanent tax adjustment related to the repurchase of a portion of the Company’s 2025 Convertible Notes during the quarter. This unfavorable permanent tax adjustment, along with other special items, were excluded in calculating the Company’s non-GAAP tax rate of 18.9 percent.

In other news, the company today announced it will add new service to Tegucigalpa as the first commercial carrier to fly to the newly-established Palmerola International Airport (XPL).

Flights will start in November.

Spirit Airlines to resume all remaining international service from Orlando

Spirit Airlines today announced plans to offer more than 80 departures per day at MCO by the end of 2021.

The company unveiled the largest schedule it has ever operated from Orlando, including new flights to destinations stretching from New Hampshire to the Dominican Republic along with reinstating the balance of its international operation.

Spirit confirmed plans to restore pre-pandemic flights to Cartagena, Colombia (CTG); Guatemala City, Guatemala (GUA); Montego Bay, Jamaica (MBJ); Port-au-Prince, Haiti (PAP) and San Salvador, El Salvador (SAL) while increasing San Jose, Costa Rica (SJO) to daily service. The airline’s full reinstatement of its international schedule comes on the heels of a complete reactivation of its domestic network from MCO that was finished in time for the summer travel season. New domestic options include Louisville (SDF); Manchester, N.H. (MHT); Miami (MIA); Milwaukee (MKE) and St. Louis (STL).

Spirit Airlines New & Resumed Service at MCO: 

Destination:              

Flights Available:  

Effective:  

Cancun (CUN) NEW     

Daily         

Immediately

Louisville (SDF) NEW  

Daily          

Immediately

Milwaukee (MKE) NEW  

Daily         

Immediately

Punta Cana (PUJ) NEW  

3x per week  

Immediately

Santo Domingo (SDQ) NEW  

4x per week   

Immediately

St. Louis (STL) NEW     

Daily           

Immediately

Manchester, NH (MHT) NEW 

Daily       

Oct. 7, 2021

Miami (MIA) NEW   

Daily       

Nov. 17, 2021

Cartagena (CTG) RESUMING   

2-3x per week  

Sep. 10, 2021

Guatemala City (GUA) RESUMING  

4x per week   

Sep. 9, 2021

Montego Bay (MBJ) RESUMING  

3x per week

Sep. 9, 2021

Port-au-Prince (PAP)* RESUMING  

3x per week

Nov. 18. 2021

San Salvador (SAL) RESUMING   

3x per week

Nov. 19, 2021

San Jose, CR (SJO) MORE FLIGHTS  

Increases to daily

Nov. 17, 2021

Altogether, Spirit Guests will have roughly 20 additional flights and 10 new destinations to choose from each day compared to two years ago. The airline’s Orlando operations will be 45 percent larger than they were at the end of 2019 once the new routes and resumptions come online.

Spirit’s Investment in Orlando

Spirit’s growth at Orlando International makes it the airport’s largest international airline and second largest airline overall, which means more jobs at the airport and behind the scenes.

  • Last month the airline opened its second Operations Control Center (OCC), which brings another 75 positions to Orlando and joins an existing South Florida facility that manages the flow of planes throughout the carrier’s network 365 days a year. The Orlando OCC joins Spirit’s existing crew base and state-of-the-art inflight training facility at MCO.
  • This year, 16 new fuel-efficient Airbus A320neo planes will join the airline’s Fit Fleet™, which is among the youngest in the industry. Next year, Spirit plans to accept another 21 new planes.
  • Spirit is welcoming Guests back to MCO with a refreshed ticket lobby featuring a bold new look and digital signage to help international and domestic travelers find the right check-in counter quickly. The airline worked with Synect Media to update the space and ensure a smooth journey from curb to gate as it continues to grow in Orlando.

Spirit Airlines touches down in Milwaukee, announces new routes

Spirit Airlines’ bright yellow planes touched down in Milwaukee for the first time today—carrying good news for travelers and a special gift for one of the region’s most revered charitable organizations.

The airline announced more nonstop routes coming soon to Milwaukee Mitchell International Airport (MKE) during its inaugural celebration and presented a donation to the Ronald McDonald House Charities of Eastern Wisconsin.

Spirit will nearly triple the destinations it serves nonstop from MKE starting this fall. The carrier plans to add daily flights to Fort Lauderdale (FLL), Fort Myers (RSW), Phoenix (PHX), and Tampa (TPA), plus three weekly flights to Cancun (CUN), the airline’s first international route from Milwaukee.

Spirit Airlines Service to/from MKE: 

Destination:  

Flights Available:  

Launch Date:  

Las Vegas (LAS) 

Daily 

June 24, 2021 

Los Angeles (LAX) 

Daily 

June 24, 2021 

Orlando (MCO) 

Daily 

June 24, 2021 

Fort Lauderdale (FLL) NEW

Daily 

Nov. 17, 2021

Fort Myers (RSW) NEW

Daily 

Nov. 17, 2021

Phoenix (PHX) NEW

Daily 

Nov. 17, 2021

Tampa (TPA) NEW

Daily 

Nov. 17, 2021

Cancun (CUN) NEW

3x per week

Dec. 23, 2021

Spirit Airlines is finally coming to Miami

2021 "Spirit Untamed" promotional livery

Spirit Airlines has long had a competitive hub at lower-cost Fort Lauderdale-Hollywood Airport (FLL). Now the growing carrier is planning to expand to nearby Miami International Airport (MIA) in October following the moves of other low-cost carriers.

According to NBC 6 in South Florida, Spirit Airlines is planning to fly from MIA up to 30 domestic and international destinations starting on October 6, 2021.

Details will follow.

Current Spirit routes from the FLL hub:

Frontier Airlines has also been expanding at MIA along with Southwest Airlines.

This will put increased pressure on American Airlines’ hub at MIA.

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

Spirit Airlines aircraft slide show:

Spirit Airlines adds two more routes from Louisville

Spirit Airlines has announced the addition of two new, nonstop routes from the Derby City to Tampa (TPA) and Fort Myers (RSW) on Florida’s Gulf Coast starting later this year. 

Flights from Louisville (SDF)

Destination:

Flights Available:

Launch Date:

Fort Lauderdale (FLL)

Daily

May 27, 2021

Las Vegas (LAS)

Daily

May 27, 2021

Los Angeles (LAX)

Daily

May 27, 2021

Orlando (MCO)

Daily

May 27, 2021

Pensacola (PNS)

3X Weekly

June 10, 2021

Fort Myers (RSW) NEW

4X Weekly

Nov. 17, 2021

Tampa (TPA) NEW

3X Weekly

Nov. 18, 2021

Spirit flight 1227 will be the airline’s first departure from Louisville Muhammad Ali International Airport (SDF). Plans call for it to leave under a water cannon salute with nonstop service to Fort Lauderdale/Hollywood. The rest of the day’s schedule calls for flights to and from Orlando, Las Vegas and Los Angeles with service to Pensacola following in June. Thursday’s announcement means SDF travelers will be able to catch nonstop flights to seven cities—and connections throughout the U.S., Latin America and the Caribbean—while enjoying Spirit’s famous low fares, Signature Service and on-time performance.

Spirit continues to seize growth opportunities as demand for air travel increases. This year, 16 new fuel-efficient Airbus A320neo planes will join the airline’s Fit Fleet™, which is among the youngest in the industry. Next year, Spirit plans to accept another 21 new planes.

Spirit Airlines loses $112.3 million in the first quarter

Delivered on November 9, 2019

Spirit Airlines, Inc. today reported first quarter 2021 financial results.

The company ended the first quarter 2021 with $1.9 billion of unrestricted cash, cash equivalents, short-term investment securities and liquidity available under the Company’s revolving credit facility

First Quarter 2021

As Reported                           Adjusted

First Quarter 2020

As Reported                  Adjusted

(GAAP)                             (non-GAAP)1

          (GAAP)                      (non-GAAP)1

Total Operating Revenues

$461.3 million                      $461.3 million

       $771.1 million                 $771.1 million

EBITDA

$(28.2) million                    $(199.7) million

$8.0 million                   $8.0 million

EBITDA Margin

   (6.1)%                              (43.3)%

1.0%                            1.0%

Pre-tax Income (Loss)

$(138.2) million                   $(307.9) million

       $(74.6) million               $(74.6) million

Net Income (Loss)

$(112.3) million                   $(242.5) million

        $(27.8) million               $(58.9) million

Diluted Earnings (Loss) Per Share

   $(1.15)                             $(2.48)

$(0.41)                         $(0.86)

“We were very pleased to see how well both our domestic and international network performed as demand strengthened in the last few weeks of the quarter. This strength, along with improvement in forward bookings, drove positive cash from operations for the full first quarter 2021 even when excluding the payroll support program funds received. Assuming these trends continue, we believe we can achieve a positive Adjusted EBITDA margin for the full year 2021,” said Ted Christie, Spirit’s President and Chief Executive Officer. “While acknowledging that the recovery is still in progress and may not be linear, we continue to believe we will be among the first U.S. carriers to reach sustained profitability.”

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, in order to protect the long-term sustainability and growth of the Company. 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 Quarterly Report on Form 10-Q for the period ending March 31, 2021 for additional disclosures regarding these measures.

Capacity and Operations
Load factor for the first quarter 2021 was 72.1 percent on a year-over-year capacity decrease of 26.9 percent. During the first quarter 2021, the U.S. government implemented negative COVID-19 testing requirements for all inbound international travelers entering the United States. About 12 percent of Spirit’s first quarter 2021 capacity was negatively impacted by this new regulation.

Spirit continued to deliver strong operational results during the first quarter 2021. As measured by the DOT, first quarter 2021 Completion Factor2 was 98.6 percent and on-time performance2 was 85.3 percent.

Revenue Performance
Total operating revenues for the first quarter 2021 were $461.3 million, a decrease of 40.2 percent year over year as a result of continued negative impacts to demand for air travel due to the COVID-19 pandemic. Early in the first quarter 2021, the Company experienced another setback in demand as the new international testing requirements were implemented and some states increased jurisdictional restrictions following spikes in COVID-19 case counts. However, in March 2021, as the vaccine rollout gained traction and jurisdictional restrictions eased, domestic and international demand rebounded strongly.

For the first quarter 2021, total revenue per passenger flight segment (“Segment”) decreased 16.4 percent year over year to $84.27. Fare revenue per Segment decreased 24.2 percent to $31.84 while non-ticket revenue per Segment decreased 10.8 percent to $52.433. As has been the case since the start of the COVID-19 pandemic, non-ticket revenue per segment for the first quarter 2021 was impacted by the suspension or reduction of certain booking-related fees; however, as the quarter progressed and domestic and international demand strengthened, average non-ticket revenue per segment improved to above $55.00 for most of March 2021.

Cost Performance
For the first quarter 2021, total GAAP operating expenses decreased 32.0 percent year over year to $563.8 million, primarily due to the grant component of the funding received through the payroll support program (further discussed below). Adjusted operating expenses for the first quarter 2021 decreased 11.5 percent year over year to $733.5 million4. The decrease in adjusted operating expenses was primarily driven by reductions in various flight-volume related expenses compared to the first quarter last year, such as fuel, ground handling and distribution. These decreases were partially offset by higher aircraft rent and higher depreciation and amortization. Additionally, despite the significant decrease in flight operations compared to the first quarter last year, some variable expenses increased. Salaries, wages and benefits increased marginally due to increased costs related to Team Member benefits, primarily driven by a higher volume of health insurance claims, and landing fees and other rents also increased year over year due to rate increases at various airports Spirit serves and decreases in signatory adjustment credits.

“Our first quarter 2021 Adjusted EBITDA margin of negative 43.3 percent was better than we initially expected due to both revenue and non-fuel operating expense coming in at the better end of our range. Since the beginning of March 2021, demand trends have been progressively improving. Assuming these trends continue, we estimate our second quarter 2021 Adjusted EBITDA margin will be between negative 5 percent to breakeven, assuming a fuel price per gallon of $1.95,” said Scott Haralson, Spirit’s Chief Financial Officer. “With our industry-leading low cost structure, we remain confident that the strength of our business model will allow us to fully capitalize on the growth potential ahead of us and drive sustainable, long-term value for our shareholders.”

Fleet
Spirit took delivery of two new A320neo aircraft during the first quarter 2021, financed through direct operating leases, and purchased two A319ceo aircraft off lease. The Company ended the quarter with 159 aircraft in its fleet.

Liquidity and Capital Deployment
Spirit ended first quarter 2021 with unrestricted cash, cash equivalents, short-term investment securities and liquidity available under the Company’s revolving credit facility of $1.9 billion.

Total capital expenditures for the first quarter 2021 were approximately $92 million, primarily related to pre-delivery deposits associated with future aircraft deliveries and the purchase of two A319 aircraft off lease.

On March 12, 2021, the Company entered into the First Amendment to Credit and Guaranty Agreement (the “First Amendment”), amending its existing Senior Secured Revolving Credit Facility. The First Amendment increases the existing lending commitments by $60 million, for total lending commitments of $240 million, and extends the maturity date from March 30, 2022 to March 30, 2024. The additional $60 million remained undrawn as of March 31, 2021.

On December 27, 2020, the Consolidated Appropriations Act, 2021 was signed into law. This new legislation extended the payroll support program of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) through March 31, 2021 (“PSP2”). On January 15, 2021, the Company entered into an agreement with the United States Department of the Treasury (“Treasury”) in connection with the PSP2 funding. During the first quarter of 2021, the Company received a total of $184.5 million through the PSP2, used exclusively to pay for salaries, wages and benefits for the Company’s Team Members through March 31, 2021. Of that amount, a total of $25.3 million is in the form of a low-interest, 10-year loan. Also, in connection with its participation in the PSP2, the Company issued warrants to the Treasury to purchase up to 103,761 shares of the Company’s common stock at a strike price of $24.42 per share (the closing price of the shares of the Company’s common stock on December 24, 2020). The remaining amount of $156.5 million, net of related costs, is in the form of a grant and was recognized within special credits on the Company’s condensed consolidated statements of operations during the first quarter 2021.

The American Rescue Plan Act of 2021 (“ARP”) was enacted on March 11, 2021, authorizing Treasury to provide additional assistance to passenger air carriers that received financial assistance under PSP2 (“PSP3”). Under the ARP, Treasury will provide up to $14 billion to fund the PSP3 for employees of passenger air carriers. In April 2021, the Company was notified that, subject to final execution of an agreement with Treasury, it will receive approximately $197.9 million under the PSP3 and an additional $27.7 million under the PSP2. The PSP3 extends certain restrictions imposed on participating airlines, including the restriction to refrain from conducting involuntary furloughs or reducing pay rates and benefits until September 30, 2021.

Diluted Share Count
The Company elected to early adopt ASU No. 2020-06, “Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” effective January 1, 2021. Per ASU No. 2020-06, if the Company records a net profit, it will use the “If-Converted Method” for its convertible debt. The dilutive impact from the convertible debt under the “If-Converted Method” based on the convertible debt outstanding as of March 31, 2021 would have been 13.7 million shares had the Company recorded a net profit. The Company anticipates it will continue to use the Treasury Stock Method for the dilutive impact related to outstanding warrants.

Top Copyright Photo: Spirit Airlines Airbus A320-271N WL N918NK (msn 9259) FLL (Ken Petersen). Image: 948841.

Spirit Airlines aircraft slide show:

Spirit Airlines expands in Los Angeles, adds third destination in Mexico

Spirit Airlines has announced plans to expand internationally from Los Angeles International Airport (LAX) after two decades of providing high value and low fares domestically. The airline will offer daily flights between LAX and Los Cabos International Airport (SJD) starting May 5, and nonstop flights to Puerto Vallarta’s Licenciado Gustavo Diaz Ordaz International Airport (PVR), starting on July 1.

Spirit will also offer Guests the only nonstop flights from LAX to Columbus (CMH), Milwaukee (MKE), LaGuardia (LGA) and Louisville (SDF), as well as a new nonstop flight to St. Louis (STL), substantially expanding the airline’s flight offerings in Southern California.

New Spirit Airlines Service in Los Angeles

Destination:

Flights Available:

Start Date:

Los Cabos (SJD)

Daily

May 5

  Louisville (SDF)

Daily

  May 27

  St. Louis (STL)

Daily

  May 27

Columbus (CMH)

Daily

June 9

  LaGuardia (LGA)

Saturday Only

 June 12

Milwaukee (MKE)

Daily

June 24

  Puerto Vallarta (PVR)

Daily

  July 1

In 1999, Spirit launched its service in California with flights out of LAX, and later grew to serve Sacramento (SMF), Oakland (OAK) and San Diego (SAN) as well. Recently, Spirit stepped up investments in the LA Basin by adding service to Burbank (BUR) and Orange County (SNA).

In other news, Spirit is expanding on its international growth with new flights from Dallas-Fort Worth, Houston and Los Angeles to Puerto Vallarta.

The airline will offer daily flights between Puerto Vallarta and Los Angeles International Airport (LAX), along with service three times weekly from Houston’s George Bush Intercontinental Airport (IAH) and Dallas-Fort Worth International Airport (DFW) operating on Tuesdays, Thursdays and Sundays.

Spirit Airlines Service to Puerto Vallarta

Destination:

Flights Available:

Start Date:

Los Angeles (LAX)

Daily

July 1

  Dallas-Fort Worth (DFW)

3x Weekly

  July 1

  Houston (IAH)

3x Weekly

  July 1

Spirit will also add nonstop service between LAX and Los Cabos, Mexico (SJD) starting May 5. The route will be Spirit’s first international service from Los Angeles, which will be joined by Puerto Vallarta when it launches the following month.

 

Spirit Airlines adds St. Louis and Pensacola

Spirit Airlines announced plans to add St. Louis Lambert International Airport (STL) to its route map with nonstop daily service to five cities in the Spirit of Lindberg’s historic nonstop flight. The airline plans to start flying on Thursday, May 27, with flights to Fort Lauderdale (FLL), Orlando (MCO), Las Vegas (LAS), Los Angeles (LAX) and Pensacola (PNS).

Flights from St. Louis (STL)

Destination

Flights Available:

Launch Date:

Fort Lauderdale (FLL)

Daily

May 27, 2021

Las Vegas (LAS)

Daily

May 27, 2021

Los Angeles (LAX)

Daily

May 27, 2021

Orlando (MCO)

Daily

May 27, 2021

Pensacola (PNS)

Daily

June 10, 2021

St. Louis is the seventh new city added to Spirit’s network in the past year. The airline continues to seize growth opportunities as demand for air travel increases, having announced new service to Louisville, Milwaukee and Pensacola in the past two weeks.

In other news, the airline announced plans to fly to Pensacola International Airport (PNS) starting on June 10. Spirit will offer the only nonstop flights to Columbus (CMH), Indianapolis (IND) and Louisville (SDF), along with nonstop service Austin (AUS), Dallas-Fort Worth (DFW), Kansas City (MCI) and St. Louis (STL).

Spirit Airlines Service to/from PNS

Destination: 

Flights Available: 

Launch Date: 

Austin (AUS)

Tue/Thu/Sun

June 10, 2021

Columbus (CMH)

Mon/Wed/Fri/Sat

June 11, 2021

Dallas-Fort Worth (DFW)

Daily

June 10, 2021

Indianapolis (IND)

Mon/Wed/Fri/Sat

June 11, 2021

Kansas City (MCI)

Mon/Wed/Fri/Sat

June 11, 2021

Louisville (SDF)

Tue/Thu/Sun

June 10, 2021

St. Louis (STL)

Daily

June 10, 2021

Pensacola is the eighth new city added to Spirit’s network in the past year. The airline continues to seize growth opportunities as demand for air travel increases, having announced new service to Louisville, Milwaukee and St. Louis in the past two weeks. Last month, the carrier announced an accelerated delivery schedule for new Airbus aircraft joining Spirit’s Fit Fleet™, which is among the youngest in the industry.

Spirit Airlines aircraft photo gallery:

Spirit Airlines aircraft slide show:

Spirit Airlines adds three new routes from New York LaGuardia, will split operations

Spirit Airlines has announced flights to three new destinations from LaGuardia Airport (LGA) today. The airline will offer nonstop service to San Juan, Puerto Rico (SJU) starting in April, followed by new flights to Nashville (BNA) in May and Los Angeles (LAX) in June. Spirit is also offering more flexibility to Fort Lauderdale/Hollywood (FLL) with an increase to five flights each day.

Spirit will also begin operating flights out of a second terminal at LaGuardia. The carrier worked with the Port Authority of New York and New Jersey to secure additional space for growth in Terminal A (The Marine Air Terminal). Starting on April 28, 2021, Spirit Airlines departures from LGA will take place from the following terminals:

  • Terminal A: All flights to Fort Lauderdale (five flights each day)
  • Terminal C: Flights to all destinations other than Fort Lauderdale will depart from Terminal C

Spirit Airlines at LaGuardia Airport

Destinations:

Frequency:

Start Date:

San Juan, Puerto Rico (SJU)

Saturday-only

April 17, 2021

Nashville (BNA)

Daily

May 5, 2021

Los Angeles (LAX)

Saturday-only

June 12, 2021

Chicago (ORD)

Up to 2x Daily

Existing Service

Detroit (DTW)

2x Daily

Existing Service

Dallas-Fort Worth (DFW)

1x Daily

Existing Service

Fort Lauderdale (FLL)

5x Daily

Existing Service

Myrtle Beach (MYR)

2x Daily

Existing Service

Orlando (MCO)

Up to 2x Daily

Existing Service

Tampa (TPA)

Up to 1x Daily

Existing Service

 

Spirit is working closely with the Port Authority to add communications and signage to ensure Guests arrive at the appropriate terminal. The airline will temporarily offer a complimentary shuttle service between Terminal A and Terminal C, as well. The shuttle will operate every 15-20 minutes and will run between the hours of 4 a.m. and 7 p.m.

Spirit to start three new routes from Milwaukee

Spirit Airlines has announced that Milwaukee is getting More Go on June 24, when the airline’s yellow and black planes start taking off from Milwaukee Mitchell International Airport (MKE).

Spirit will start up daily nonstop flights to Orlando (MCO), Las Vegas (LAS) and MKE’s only nonstop flight to Los Angeles (LAX).

Spirit Airlines Service to/from MKE:

Destination: 

Flights Available: 

Launch Date: 

Las Vegas (LAS)

Daily

June 24, 2021

Los Angeles (LAX)

Daily

June 24, 2021

Orlando (MCO)

Daily

June 24, 2021

Spirit will be the only airline serving Los Angeles nonstop from Milwaukee, removing intermediate stops on the way and making quick trips between the two cities easier than ever.

Spirit Airlines aircraft photo gallery:

Spirit Airlines aircraft slide show: