Spirit Airlines has reported a second quarter 2024 net loss of $193 million or ($1.76) per diluted share on a year-over-year decline in revenue of 10.6 percent to $1.28 billion. At June 30, 2024, the carrier had a total of $1.14 billion in liquidity.
On Thursday (August 1st, 2024), Spirit Airlines reported their second quarter financial results for the period ending June 30, 2024. The carrier reported a second quarter net loss of $193 million or ($1.76) per diluted share on a 10.6 percent year-over-year decline in revenue to $1.28 billion. Spirit’s second quarter total revenue per available seat mile (TRASM) declined 12.1 percent versus the same period last year to 9.05 cents, while cost per available seat mile (CASM) decreased 0.2 percent to 10.13 cents. Costs excluding fuel (CASM-ex) increased 2.9 percent compared to Q2 2023 to 7.36 cents. At June 30, 2024, Spirit Airlines had unrestricted cash, cash equivalents, short term investments and liquidity available under the company’s revolving credit facility of $1.14 billion.
In Thursday’s announcement, Spirit Airlines’ President and CEO, Ted Christie, said,
“Summer demand remains robust and load factors have been strong; however, significant industry capacity increases together with ancillary pricing changes in the competitive environment have made it difficult to increase yields, resulting in disappointing revenue results for the second quarter of 2024. The continued intense competitive battle for the price-sensitive leisure traveler further reinforces our belief that we are on the right path with our transformation plan to redefine low-fare travel with new, high-value travel options that will allow Guests to choose an elevated experience at an affordable price. I want to thank our entire team for their dedication and patience as we execute on these initiatives intended to drive improvement in overall revenue production and put us on the path to profitability.”
Also commenting on the company’s second quarter 2024 financial results, Spirit Airlines’ Chief Financial Officer, Fred Comer, said,
“The Spirit management team is focused on returning to profitability, and we believe the transformation plan we recently announced places us on the path to improved financial performance. We will continue to aggressively manage our costs to maintain our position as a low-cost leader in the industry and to make every effort to maintain adequate liquidity. Earlier this week, we closed on a Direct Lease and Pre-Delivery Payment Transaction that raised, in the aggregate, approximately $186 million. We expect to end the year 2024 with over $1.0 billion of liquidity, including unrestricted cash and cash equivalents, short-term investment securities, liquidity available under our revolving credit facility and additional liquidity initiatives, assuming that we are able to close those initiatives that are currently in process. Meanwhile, we remain in active discussions with the advisors to the noteholders to address the upcoming debt maturities and will provide updates on our progress when appropriate.”
During the second quarter, Spirit took delivery of four new A320neos and four new A321neos, and retired five A319ceos, ending the period with a fleet of 210 aircraft.
Dania Beach, Florida-based low-cost carrier Spirit Airlines (NYSE: SAVE) is committed to offering the best value in the sky with service to nearly 100 destinations in the U.S., Latin America, and the Caribbean. The airline allows customers to select and pay for only the products and services they want, something they call “À La Smarte.” Spirit also operates one of the youngest and most fuel-efficient fleets in the U.S. The carrier proudly calls their youthful fleet of aircraft their “Fit Fleet®.” Spirit Airlines operates a fleet of 220 Airbus A320 Family and A320neo Family aircraft.
In trading Friday morning (August 2, 2024), shares in Spirit Airlines (NYSE: SAVE) were 2.17% lower at $2.70/share (9:51 AM EDT).
Source: Spirit Airlines
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