Spirit Airlines Reports Second Quarter Net Loss of $288 Million on Revenue of $859 Million
Spirit Airlines has reported a second quarter net loss of $288 million or ($2.73) per share and a 15 percent year-over-two revenue decline to $859 million. The carrier ended the quarter with $2.2 billion in unrestricted cash and equivalents, short-term investments and liquidity.
On Wednesday (July 28, 2021), Spirit Airlines announced their second quarter financial results for the period ending June 30, 2021. The carrier reports a second quarter net loss of $288 million or ($2.73) per diluted share on a 15 percent revenue decline versus Q2 2019 to $859 million. The company's adjusted net loss for the second quarter was $36.3 million or ($0.34) per diluted share. Spirit Airlines ended the second quarter with $2.2 billion in unrestricted cash, cash equivalents, short-term investments and liquidity under the company’s revolving credit facility.
In Wednesday’s announcement, Spirit Airlines’ President and Chief Executive Officer, ted Christie, said,
“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. We remain very well-positioned to stimulate markets and capture the significant market opportunities in the domestic U.S. and near-field international marketplace.”
Spirit’s Chief Financial Officer, Scott Haralson, added,
“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. These pillars create a strong platform for us to continue to drive sustainable, long-term value for our shareholders.”
The airline’s load factor for the second quarter was down 0.6 points versus Q2 2019 to 84.4 percent, while capacity was down 5.1 percent compared to the same period in 2019. Second quarter total revenue per passenger segment decreased 9.4 percent to $102.48 and fare revenue per segment declined 23.5 percent versus Q2 2019 to $44.09. Non-ticket revenue per segment improved year-over-two by $2.85 to $53.89.
Spirit’s second quarter GAAP operating expenses declined 9.8 percent versus the second quarter of 2019 to $766 million, primarily attributable to the payroll and benefit grant component of the U.S. Cares Act Payroll Support Program extension (PSP3).
During the second quarter, Spirit took delivery of five new Airbus A320neos, three financed through direct operating leases and two under sale-and-leaseback transactions. The carrier also purchased two off-lease Airbus A319ceos, ending the quarter with a fleet of 164 aircraft. Second quarter CAPEX was approximately $168 million, primarily related to pre-delivery deposits and the purchase of the A319ceos.
Miramar, Florida-based low-cost carrier Spirit Airlines (NYSE: SAVE) is committed to offering the best value in the sky with service to 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 will add 16 new fuel-efficient Airbus A320neos to their fleet in 2021 and an additional 21 aircraft in 2022.
In trading Thursday afternoon (July 29, 2021), Shares in Spirit Airlines, Inc. (NYSE: SAVE) were up 0.32% to $28.61/share (1:30 PM EDT).
Source: Spirit Airlines